Tuesday, April 19, 2011

Tell Me A Story Goldilocks

Double-dealing Goldman Sachs sold CDOs on subprime mortagages to investors all the while it was taking positions betting the mortgages would fail. They purchsed "insurance" agaist loses from AIG. AIG soon had so many claims against them that they could not pay off, so the government bailed them out to the tune of $182 billion, and thus made Goldman golden. This was called an AIG bailout, but it was really a Goldman bailout. Goldman used their politial power to insist that AIG could not sue Goldman for misrepresenting investments they knew were going bad.
Goldman insists that the contradictory actions were made by separate entities acting independently within the firm. Sure, tell me another funny story.
Not new news, but worth remembering.

No comments: