The UK Supreme Court rejects Goldman Sachs's (GS +0.4%) effort to enforce a claim over a $835M loan to Novo Banco, the bank that was formed from the "good" assets of failed Portuguese bank Banco Espirito Santo, the Financial Times reports.
Goldman may now be forced to pursue its claim through the Portuguese courts. The claim relates to a loan that Goldman arranged for Banco Espirito Santo shortly before the Portuguese bank collapsed under charges of fraud.
The U.S. investment bank says that because the loan was written under UK law, it had the right to challenge decisions that were made by Portugal's central bank through British courts.
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