Goldman Sachs sues Natixis in London High Court

LONDON (BestGrowthStock) – U.S. investment bank Goldman Sachs (GS.N: ) has sued French investment bank Natixis (CNAT.PA: ) in London’s High Court over three credit derivative transactions, Natixis’s law firm, Stephenson Harwood, said.

The dispute centers around whether French investment bank Natixis can cancel a deal on three credit default swaps with Goldman, which is claiming damages for breach of contract.

A Goldman Sachs spokeswoman said on Thursday it had no comment to make on the situation, while Stephenson Harwood said Natixis would defend itself vigorously.

“We are preparing our defense. We are surprised that Goldman is suing us,” a spokesman for Stephenson Harwood said.

Natixis is the investment banking arm of BPCE, France’s second-biggest retail bank which owns over 70 percent of Natixis’s share capital. Earlier this month, Natixis posted a forecast-beating second-quarter profit (Read more your timing to make a profit.).

Natixis shares were up 0.3 percent at 4.39 euros in mid-morning trade, well below the 19.55 euros price at which Natixis listed on the Paris bourse in December 2006 but up around 23 percent since the start of 2010.

Goldman Sachs shares closed at $149.20 on Wednesday.

(Reporting by Sudip Kar-Gupta; Editing by Dan Lalor)

Goldman Sachs sues Natixis in London High Court