The New York Times has a potentially explosive story today indicating Goldman Sach’s top executives personally oversaw the mortgage-securities trading unit that created the Abacaus deals and had decided to go short the market. But what did it tell shareholders?
|By: Scarecrow Monday April 19, 2010 6:03 am|
|By: Cynthia Kouril Sunday April 18, 2010 1:15 pm|
I don’t understand it. Why would they do it? Oh, I know that Goldman Sachs made a lot of money working both sides of the deal selling short on a synthetic CDO that it created with direct input of the customer who wanted to take the short position (bet against the CDO).
|By: masaccio Sunday April 18, 2010 10:30 am|
Lloyd Blankfein says that Goldman Sachs was just a market maker, trying to accommodate its customers. The SEC says it tried to accommodate some more than others.
|By: masaccio Sunday April 11, 2010 10:30 am|
Goldman Sachs says it didn’t bet against its customers in subprime mortgages. I guess it depends on what they mean by customer, and what they mean by market maker. It says it acted properly in its dealings with AIG. I guess it depends on what they mean by “properly”.
|By: masaccio Friday April 9, 2010 3:15 pm|
Brooksley Born wants to know the effect of credit default swaps on the housing bubble and the Great Crash. Citibank representatives don’t think there was an effect. Yves Smith disagrees.