Goldman’s Abacus Redux: Angry Hedge Fund Battles Over a CDO (1)

Goldman Sachs might have a problem called Abacus. Again.

Financial types will recall that in the wake of the 2008 crisis, a synthetic CDO by the name of Abacus became a poster-child of irresponsible Wall Street behavior. Regulators ended up slapping Goldman Sachs with a then-unprecedented fine of $550 million.

Now, another member of the same family of collateralized debt obligations is posing a fresh headache for the firm. There’s an angry hedge fund in one corner, and the Wall Street giant in the other. They are brawling over a technical provision with the dispute centered over almost $200 million ...