Oak Finance Luxembourg SA sold by Goldman Sachs
Carlson & Associates, P.A. is currently investigating the sale of Oak Finance Luxembourg SA (“Oak Finance”) notes to clients of Goldman Sachs. It has been reported that Goldman Sachs set up the entity, Oak Finance, to make a loan to Banco Espírito Santo SA (“Espírito Santo”) just weeks prior to Espírito Santo’s collapse.
Espírito Santo has since been split into two entities. “Novo Banco” now holds the good assets of Espírito Santo. The Bank of Portugal has decided that Novo Banco will not have to repay the Oak Finance notes. This means that investors could lose their entire investment in Oak Finance.
The investment in Oak Finance by Goldman Sachs was risky and may not have been suitable for all clients who were sold the notes. Additionally, Goldman Sachs may not have performed adequate due diligence prior to making the loan.