UK courts rule in favour of ‘Novo Banco v. US investment giant Goldman Sachs’

It is not being a good ‘end-of-year’ for US investment giant Goldman Sachs. After hiring former EC president Durão Barroso as its non-executive president – only to see Barroso’s red-carpet privileges as a gold-plated lobbyist promptly removed – it has now seen UK courts ruling against its ploy to try and recover on British soil a €763 million loan made in the final days leading up to the collapse of BES in Portugal.

As explained by financial website Bloomberg at the time, Goldman Sachs’ bid arose from fears that if the case is heard in Portugal it could “drag on for 16 years” (click here).

But the UK’s High Court has ruled that it definitely must be heard in Portugal – a victory that is seeing Novo Banco, the bank that morphed from the ashes of BES, rubbing its hands in proverbial glee.

Novo Banco has interpreted the High Court’s decision as a rule in favour of the Bank of Portugal, explains Público.

As such, the bank is taking heart that it will win its case, and see the €763 million basically written-off – even though Goldman Sachs claims to have proof that it was told this would never happen (click here).

The High Court’s decision revokes the findings of a lower court in August 2015 which ruled in favour of Goldman Sachs, adds Público.

At issue is a loan conceded through one of Goldman Sach’s subsidiaries, Oak Finance whose investors include a New Zealand pension fund (click here).

[email protected]