Bayou Award Against Goldman Is Upheld

Goldman Sachs has been dealt another setback in its effort to overturn $20.5 million arbitration award stemming from the 2005 collapse of the hedge fund manager Bayou Group.

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The arbitration award is significant because if upheld it may have broader ramifications on Wall Street. Firms like Goldman clear billions of dollars of in trades a year and have long held that their job is to simply clear those transactions, not police the clients. Some experts have argued the award could force a higher duty on Wall Street.