Goldman Sachs talks with investors over a CDO product compensation

April 29 morning, according to foreign media reports, Goldman Sachs is negotiating a potential settlement with an investor.　　The investor claims that it suffered losses after buying 1 billion of billions of dollars in mortgage-backed securities and then went bankrupt, and a Goldman executive had privately criticized the securities product. The FT wrote that the investor, a hedge fund known as the "Base Income Alpha Foundation", was seeking compensation for its $100 million trillion investment in a complex portfolio of products, according to several people familiar with the matter, Timberwolf said.　　Timberwolf's value plunged in March 2007, when it was launched, Goldman Sachs had decided to reduce its exposure to the US housing market.　　The negotiations are at an early stage and there remains uncertainty as to whether a settlement will be reached. But the news will complicate the pressures facing Goldman Sachs.　　Before that, a U.S. Senate panel questioned Goldman's former and current executives, and investigated Goldman's activities in the mortgage market before the financial crisis. Earlier this month, the SEC filed a civil fraud charge against Goldman Sachs and one of its bankers, accusing them of misleading investors on mortgage-backed collateralised debt products known as Abacus.　　Goldman Sachs and the banker, Fabry-Tourre, denied the allegation. Goldman declined to comment on Timberwolf. Timberwolf is a collateralised debt bond that contains some of the assets found in Abacus and other subprime products.