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, the New York Times DealBook blog reported yesterday. A panel of the United States Court of Appeals for the Second Circuit on Tuesday upheld the award to the creditors of Bayou, who had accused Goldman of helping the fund perpetrate a Ponzi scheme. Goldman cleared trades for Bayou, and the unsecured creditors' committee filed its arbitration claim against Goldman in 2008.
