Ex-Goldman trader seeks $20m after 'kangaroo court' knockback

Kangaroo

His case was called 'ridiculous' and 'bulls---' during a hearing.

A former Goldman Sachs trader who helped lead the firm’s bets against subprime mortgages before the financial crisis asked a court to throw out an arbitration ruling denying him more than $20m in unpaid compensation.

Bloomberg News reports that Deeb Salem encountered a 'kangaroo court' and a 'shocking and blatant miscarriage of justice' as Financial Industry Regulatory Authority arbitrators didn’t allow him to call some of Goldman Sachs’s top trading executives as witnesses, he said in a complaint lst in New York State Supreme Court. Salem, 35, said in the complaint that members of the industry-funded regulator’s arbitration panel called his case 'ridiculous' and 'bulls---' during a hearing.

Salem left the firm in May 2012, a year after a U.S. Senate subcommittee said he and other Goldman Sachs traders tried to manipulate prices of derivatives linked to subprime home loans in 2007 for their own benefit. The subcommittee’s assertions were based in part on Salem’s discussion of an attempted short squeeze in his self-evaluation, a finding which Salem said “put too much emphasis on ‘words,’” according to the Senate report.

The three-person Finra arbitration panel said in a March 17 decision to dismiss his case that even if the witnesses said what Salem maintained they would, he hadn’t established a legally enforceable claim for the bonus money.

To access the complete Bloomberg News article hit the link below:

Ex-Goldman Trader Sues in Attempt to Get $20 Million in Bonuses

Moise Safra, Part of Brazilian Billionaire Bank Clan, Dies at 79

Best place to workThe Best Firm of the Last Decade is...

Register for Financial Markets News Alerts