NEW YORK, March 20 Goldman Sachs Group Inc
has won a pay dispute with a former employee known for
his role in shorting the U.S. housing market in the run-up to
the financial crisis, according to a arbitration ruling this
Deeb Salem, who worked on Goldman's mortgage trading desk,
had been seeking more than $21 million in compensation as well
as legal costs and other penalties, according to the ruling by a
Financial Industry Regulatory Authority arbitration panel.
Salem filed the claim last April, and Goldman sought to
dismiss it in June. The panel granted Goldman's request on March
17. The document was posted to a Finra database on Thursday.
Salem gained some notoriety after the financial crisis
because a U.S. Senate panel included his own performance review
for 2007. In the review, he detailed what he described as
Goldman's plan to put a "short squeeze" on the mortgage market.
He also described himself as an expert trader and said he
deserved to be promoted to managing director.
"I am as competitive as Michael Jordan," Salem wrote,
according to Senate documents. "I don't just want to win - I
want to win every time and I want to steamroll the opposition."
In his Finra claim against Goldman, Salem said he deserved
higher bonuses for 2010 and 2011, and a bonus and deferred
compensation that he did not receive for 2012. He left the Wall
Street bank that year to take a job at GoldenTree Asset
Goldman declined to comment on the Finra dispute. Jonathan
Sack, the lawyer representing Salem, said his client plans to
file an appeal but declined further comment.
(Reporting by Lauren Tara LaCapra and Suzanne Barlyn; Editing
by Cynthia Osterman)