Economy Briefs

Question of the Day

Is it still considered bad form to talk politics during a social gathering?

View results

LAWSUIT

Allstate sues Goldman Sachs over investments

Allstate Corp. is suing Goldman Sachs Group Inc., saying more than $122 million in mortgage-backed securities the insurance company bought beginning in 2006 were fraudulent.

Allstate said in a statement Monday that it filed the lawsuit in New York state court against Goldman Sachs and certain affiliates. The complaint alleges violations of state laws involving residential mortgage-backed securities.

Allstate claims Goldman Sachs provided documents about the investments that “contained untrue statements and omitted material facts.” The complaint seeks unspecified damages.

Goldman Sachs spokesman Michael DuVally declined to comment on the lawsuit.

Allstate says it purchased more than $122 million in mortgage-backed securities from Goldman Sachs and affiliates in 2006 and 2007. The value of those securities plunged as the housing market bubble burst.

MONTANA

Canadian company buys embattled electricity line

HELENA — A Canadian energy company is buying an embattled Montana power transmission line project that has seen its plans of shipping wind energy across the border become mired in landowner disputes.

Alberta, Canada-based Enbridge Inc. announced Tuesday it was buying Tonbridge Power Inc., whose main business involves the Montana-Alberta Tie Line power transmission project. The deal is subject to shareholder approval.

Enbridge says it will pay $70 million for Tonbridge and the debt it has incurred so far in building the 214-mile transmission line.

Ultimately, Enbridge says it expects to spend approximately $300 million completing the line.

The MATL line has been the focus of high-profile legal and legislative battles in Montana. Some landowners are refusing to sell rights of way to the company, leading to bitter eminent domain claims.

NEW YORK

Story Continues →

View Entire Story
Comments
blog comments powered by Disqus
TWT Video Picks