‘Product from hell’ at heart of Goldman battle | Business

Goldman Sachs is locked in a legal dispute with Europe’s largest wine exporter over “exotic” financial derivatives that have been described as a “product from hell”.

The investment bank is engaged in a High Court battle in London with J García Carrión, of Spain, whose brands include Mayor de Castilla, over financial products that the wine company claims were mis-sold.

J García Carrión is demanding that Goldman Sachs repay €3.4 million, claiming that the bank encouraged the wine producer’s former chief financial officer to enter into unauthorised foreign exchange transactions. This was after Goldman Sachs had sued J García Carrión for $6.2 million over the non-payment last year of two transactions related to the derivatives.

Established in Jumilla, southeastern Spain, in 1890, J García Carrión