Goldman’s CDS Dance With Hedge Funds Lands It in New Legal Mess

Just three months ago, Goldman Sachs struck an unusual deal with a group of hedge funds to offload a buyout loan from its books -- saving the bank and the funds from potential losses.

Now, that odd arrangement is at the center of a lawsuit accusing the Wall Street firm of gorging on fees while exposing the acquirer in the buyout, United Natural Foods Inc., to hedge-fund sharks who stand to reap gains if it falters. United Natural had hired Goldman Sachs for the takeover and is now demanding at least $52 million -- and potentially much more -- from ...