Sunday, December 16, 2007

Goldman SACKS, Its Clients?

"The subprime-mortgage crisis has been a financial catastrophe for much of Wall Street. At Goldman Sachs Group Inc., [GS] thanks to a tiny group of traders, it has generated one of the biggest windfalls the securities industry has seen in years. ... [GS's] trading home run was blasted from an obscure corner of the firm's mortgage department--the structured-products trading group, which now numbers about 16 traders. ... [GS's] success at wringing profits out of the subprime fiasco, however, raises questions about how the firm balances its responsibilities to its shareholders and to its clients. ... The question now being raised: Why did [GS] continue to peddle CDOs to customers early this year while its own traders were betting that CDO values would fall? A spokesman for [GS] declined to comment on the issue", WSJ, 14 December.

"Raises questions"? GS's "clients" apparently come last. Did GS warn its "clients" before its own traders that the "subprime market" was composed of junk? Why should the Fed or Treasury hire any "former" GS executive? What kind of "corporate culture" has GS? "A spokesman for [GS] declined to comment on the issue". Calling Charlie Rangel, calling Barney Frank, etc..


Disgusted said...

Good one. You absolutely nailed it.

Maybe Paulson still had some in his portfolio?

Beware the correlation between net worth and self worth.

12/13/07: Billions for billionaire banks, billions for the Iraq war, and - ZILCH for child healthcare.

Way to go, America - you're a real class act.

Independent Accountant said...

Read my 1 September, 30 October and 9 November posts titled, "Anatole of France". While I am not sympathetic to federalizing health care any more than it already is, the Iraq War has been a $600 billion fiasco.

Junior said...

And why again do we keep reaching into this corrupt vault for our "experts" and top "economists"?!