Addressing Goldman’s defenders…


Dave is a part-time blogger that writes about whatever suits him at the time.

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3 Responses

  1. Barry says:

    As I understand it, the whole point is that Paulson was both shorting that deal, and selecting the list of securities from which the other party could choose. Obviously, that’s a rigged game, and G-S knew it.

    It was *not* a simple matter of one party betting ‘heads’, the other betting ‘tails’, and G-S bringing them together so that they could place their bets.Report

  2. angullimala says:

    Barry is right.

    Goldman keeps saying “investors knew that someone was taking the short side” to obfuscate the fact that investors did now know that that someone was the guy in control of the CDO.

    Its the difference between knowing the someone is betting against the Redskins and knowing that the Redskins Head Coach is betting against the Redskins.Report

  3. Dave says:

    We’re on the same page. It’s one thing to act as an intermediary, service both sides of a trade and make no representations but this was not the case here.Report