Goldman gets tough over China default

Goldman Sachs has threatened to sue a Chinese power company for defaulting on two oil hedging contracts, escalating the long dispute between China and Wall Street banks over derivatives losses.

Shenzhen Nanshan Power, a state-owned thermal power generator, said last week that J Aron & Company, the commodities business of Goldman Sachs, had threatened to sue it for $US80 million ($89m) compensation for terminating the contracts in October 2008.

Click here to read more about Goldman's dispute with Shenzhen Nanshan Power.

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