I would say, Madharry, that the onus would be on the Broker to inform BOTH parties as to ALL the relevant information that he is aware of regarding the transaction.
With regard to your example of a Real Estate Agent, my daughter and son-in-law have recently purchased a house. The REMAX Real Estate agent made it very clear that he was required to inform them, as well as the seller, of anything that he was aware of regarding the property and the purchase and selling details.
It seems that Paddy Hirsch, in that link I provided, also believed that GS had an obligation to their clients seeing as they were aware of the true nature and quality of those CDO’s.
In addition, it’s most unlikely that PAULSON would have bet so heavily, via GS, against those instruments if he wasn’t so certain that they would be losers in the future.
But I’m no great expert in these matters. No doubt one will have to wait and see what comes out in court, or elsewhere.
All we know is that GS’s share price has taken a real hammering, and if this was such a flimsy accusation, would that have been the case ? |
