Banks Bundled Bad Debt, Bet Against It and Won /
the epitome of chutzpah
"Goldman was not the only firm that peddled these complex securities — known as synthetic collateralized debt obligations, or C.D.O.’s — and then made financial bets against them, called selling short in Wall Street parlance. Others that created similar securities and then bet they would fail, according to Wall Street traders, include Deutsche Bank and Morgan Stanley, as well as smaller firms like Tricadia Inc., an investment company whose parent firm was overseen by Lewis A. Sachs, who this year became a special counselor to Treasury Secretary Timothy F. Geithner.
How these disastrously performing securities were devised is now the subject of scrutiny by investigators in Congress, at the Securities and Exchange Commission and at the Financial Industry Regulatory Authority, Wall Street’s self-regulatory organization, according to people briefed on the investigations. Those involved with the inquiries declined to comment."
nytimes.com
great article! GS sells securities to investors, and after the profits are made on the sale, they make more profit shorting the crappy securities they sold!!!
GS , now that chutzpah
historic note:
In Jewish folklore, the epitome of chutzpah is
embodied by the man who murders his parents and then begs for
the mercy of the court due to being a poor orphan, alone in an antagonistic world. |
