Dutch pension fund ABP sues Goldman Sachs

RNW archive

This article is part of the RNW archive. RNW is the former Radio Netherlands Worldwide or Wereldomroep, which was founded as the Dutch international public broadcaster in 1947. In 2011, the Dutch government decided to cut funding and shift RNW from the ministry of Education, Culture and Science to the ministry of Foreign Affairs. More information about RNW Media’s current activities can be found at https://www.rnw.org/about-rnw-media.

Dutch pension fund ABP is suing US investment bank Goldman Sachs for knowingly selling it junk mortgages and providing misleading information.

The ABP pension fund for government and education employees is the largest pension fund in the Netherlands and among the three largest in the world. Prior to the 2008 US mortgage and bank crisis, ABP invested large sums in bonds linked to US mortgages.

ABP accuses Goldman Sachs of misinforming the pension fund as to the creditworthiness of the bonds, which proved to be far riskier than the bank had suggested. This eventually caused ABP to suffer significant losses. ABP will not disclose the exact amount of the losses it suffered, a spokesperson announced on Saturday.

(cl/rk)

© Radio Netherlands Worldwide