Goldman Sachs (NYSE: GS) Sues Natixis (FR: KN) Over Derivatives Deal

Goldman Sachs Group Inc. (NYSE: GS) has filed suit against French bank Natixis (FR: KN) in the United Kingdom over a credit derivatives deal between the two companies.

According to a report from the Financial Times on Thursday, citing court documents, the dispute between the two companies related to the question as to whether or not Natixis can cancel three credit default swaps, a form of insurance on bonds issued by companies that investors can buy and sell, which were purchased by by Goldman Sachs in 2007.

The report said that a trial will take place on November 9^th.

A spokesman for the law firm which represents Naxitis, Stephenson Harwood, said that the French bank has not served its defense to Goldman Sachs Group Inc. (NYSE: GS)’s claim yet, but was surprised by the lawsuit and disputes Goldmans’ allegations. “Natixis does not propose to comment further at this stage,” the spokesman added.

The Goldman Sachs Group, Inc. (Goldman Sachs) is a bank holding and a global investment banking, securities and investment management company. The Company provides a range of financial services to customers, including corporations, financial institutions, governments and high-net-worth individuals. Its depository institution subsidiary, Goldman Sachs Bank USA (GS Bank USA), is a New York State-chartered bank. It operates in three segments: Investment Banking, Trading and Principal Investments and Asset Management and Securities Services. In March 2010, the Company’s subsidiaries sold the La Francia mine and related infrastructure assets, including Concession 5160, and Adromi Capital Corp., the holder of the La Francia II concession, to a subsidiary of The Goldman Sachs Group, Inc. In May 2010, Nexen Inc. sold its natural gas trading operations to a unit of The Goldman Sachs Group, Inc.

Shares of Goldman Sachs Group Inc. (NYSE: GS) traded up 0.81% on Friday hitting $184.24 by the end of the day.