Investment leads to suit against Goldman Sachs
NEW YORK – ACA Financial Guaranty Corp., an insurer, sued Goldman Sachs on Thursday over an investment that later went bad.
ACA is seeking $30 million in compensatory and $90 million in punitive damages. The lawsuit was filed in New York.
ACA’s complaint is similar to a lawsuit filed by the Securities and Exchange Commission last April in connection with the same investment, called Abacus. The SEC accused Goldman of selling an investment created by hedge fund manager John Paulson which was designed to fail. Goldman and Paulson made money from the investment, while investors lost more than $1 billion.
Goldman paid the SEC $550 million to settle the charges.
ACA says it lost $30 million on the investment and another $15 million from insuring it.
Mortgage rates decline as Treasury note rises
Freddie Mac said the average rate on the 30-year mortgage dropped to 4.77 percent from 4.86 percent the previous week. The average rate on the 15-year loan slipped to 4.13 percent from 4.2 percent.
The rate on the 30-year mortgage hit a 40-year low of 4.17 percent in November. The rate on the 15-year loan reached 3.57 percent in November, the lowest level on records starting in 1991.
Mortgage rates tend to track the yield on the 10-year Treasury note, which has been on the rise since November.
Apple opens app store for Mac computers
SEATTLE – Apple Inc. is expanding the “app store” idea that caught fire on the iPhone and iPad to its line of Mac computers.
Mac users who have the latest version of Apple’s computer operating system, called Snow Leopard, will be prompted to update their software. When the upgrade is complete, an icon for the new Mac app store will appear in the dock.
After launching the store software, users can browse through more than 1,000 programs for Macs. Some are free, and some will cost money; people can log in and buy software using their existing iTunes account information. As with the existing app stores for Apple’s other gadgets, people can see lists of the most popular programs and rate software they purchase.
Also similar to the existing system, software developers will name their own prices.