SCOTUS Will not Grant Goldman-Sachs Immunity from Lawsuits

[I AM NOT THAT GUY 5,715]

Goldman mortgage appeal rejected by Supreme Court

WASHINGTON — Goldman Sachs Group Inc suffered a defeat on Monday as the U.S. Supreme Court let stand a decision forcing it to defend against claims it misled investors about mortgage securities that lost value during the 2008 financial crisis.

Without comment, the court refused to consider Goldman's appeal of a September 2012 decision by the 2nd U.S. Circuit Court of Appeals in New York.

That court's action lets the NECA-IBEW Health & Welfare Fund, which owned some mortgage-backed certificates underwritten by Goldman, sue on behalf of investors in certificates it did not own, but that were backed by mortgages from the same lenders.

In afternoon trading, Goldman shares were down $2.47, or 1.6 percent, at $152.37 on the New York Stock Exchange.

Goldman and other banks have faced thousands of lawsuits by investors seeking to recoup losses on mortgage securities.

The bank has said that letting the 2nd Circuit decision stand could cost Wall Street tens of billions of dollars.

http://xfinity.comcast.net/articles/news-general/20130318/US-USA-COURT-GOLDMAN/

[Mr. Big Dog 10,747]

This picture was taken at a GS bathroom after the SCOTUS announced that they will not hear the appeal.