At least Goldman Sachs (NYSE: GS) is consistent. In a kind of replay of the AIG situation, Goldman has sued a French bank, Natixis, which cancelled three CDS deals (CDS news) instead of paying up.

Goldman was a noteholder in certain bonds issued by Altius, and subsequent to that bought CDS protection from Natixis. Goldman claims that in April 2010 it received an e-mail from the trustee attaching a notice of default relating to the class B notes issued by Altius, relates the Financial Times.

That would entitle it various payments under the CDSs. But Goldman says Natixis instead cancelled the CDS deals, apparently for failing to follow some instructions.

It may strike some as a case of a CDS issuer not wanting to pay up. This of course brings to mind the AIG situation. AIG certainly did not want to pay up, and at some point it no longer could without the help of U.S. taxpayers. My guess is that we'll see a settlement. For Natixis, the issue may be whether it's cheaper to go through the courts or to go ahead and pay up.

For more:
- here's the article

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