Germany says it may try for compensation from Goldman Sachs in fraud case
By APMonday, April 19, 2010
Germany may try for compensation from Goldman
BERLIN — Germany says it is looking into the possibility of seeking financial compensation from Goldman Sachs over a fraud case brought against the investment bank in the United States.
The Finance Ministry said German regulator BaFin will seek information on the case from the U.S. Security and Exchange Commission on Monday to gauge chances of compensation for losses at IKB Deutsche Industriebank AG.
The SEC says that IKB, an early victim of the financial crisis, lost nearly $150 million in investments marketed by Goldman. It had to be rescued in 2007 with help from a German government-owned bank.
Finance Ministry spokeswoman Jeanette Schwamberger said the government’s chances to get money back are unclear as IKB was sold in 2008 to Dallas-based Lone Star Funds.
