what just happened to goldman? something in BAC’s earnings that is specifically bad to GS?
No, SEC charges.
fraud charges
Sniff, sniff.
John Paulson is my hero. He talked GS into making CDOs made up with RMBS of his choosing, then shorted them - by buying CDS that GS wrote! No wonder he returned 550% for his investors in 2008. If I could short investments I created I’d probably do pretty well too.
Fraud? Goldman? Shockin…
Is Paulson under investigation also?
Paulson & Co is going to take a huge hit…
Carson Wrote: ------------------------------------------------------- > Is Paulson under investigation also? The bloomberg article says no.
ValueAddict Wrote: ------------------------------------------------------- > Paulson & Co is going to take a huge hit… Why? It’s not his fault that Goldman didn’t disclose pertinent information to investors.
ValueAddict Wrote: ------------------------------------------------------- > Paulson & Co is going to take a huge hit… Yeah, his investors have to be pissed he’s made them so much money.
Sweep the Leg Wrote: ------------------------------------------------------- > John Paulson is my hero. He talked GS into making > CDOs made up with RMBS of his choosing, then > shorted them - by buying CDS that GS wrote! No > wonder he returned 550% for his investors in 2008. > > > If I could short investments I created I’d > probably do pretty well too. Actually AIG (Not GS) was the short part in the CDS. And we all know who paid for AIG’s big fat failure.
look at what the puts did today
mo34 Wrote: > Actually AIG (Not GS) was the short part in the > CDS. And we all know who paid for AIG’s big fat > failure. Actually, no. From the text of the SEC complaint: " After participating in the selection of the reference portfolio, Paulson effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (“CDS”) with GS&Co to buy protection on specific layers of the ABACUS 2007-AC1 capital structure."
From what I understand, the SEC can only bring civil suits. Criminal suits are someone else’s territory. I think the New York attorney general will find this interesting… My personal opinion? F 'em. From what I’ve gathered, this wouldn’t pass the CFA ethics sniff test.
Sweep the Leg Wrote: ------------------------------------------------------- > mo34 Wrote: > > Actually AIG (Not GS) was the short part in the > > CDS. And we all know who paid for AIG’s big fat > > failure. > > Actually, no. From the text of the SEC > complaint: > > " After participating in the selection of the > reference portfolio, Paulson effectively shorted > the RMBS portfolio it helped select by entering > into credit default swaps (“CDS”) with GS&Co to > buy protection on specific layers of the ABACUS > 2007-AC1 capital structure." Do you think they’re stupid or what ? They knew the whole thing is packaged garbage, and who’s stupid enough to ensure garbage based on BS ratings ?? AIG. “In seven of Goldman’s Abacus deals, the bank went to the American International Group for insurance on the bonds. Those deals have led to billions of dollars in losses at A.I.G., which was the subject of an $180 billion taxpayer rescue. The Abacus deal in the S.E.C. complaint was not one of them.” http://www.nytimes.com/2010/04/17/business/17goldman.html?pagewanted=2&hp
“AIG stock only fin up today on expectations the firm will now have legal precedent to sue Goldman Sachs.” http://www.zerohedge.com/article/aig-surging-market-expectations-insurer-will-have-legal-claim-against-goldman Off-course they have a case. It’s pure fraud.
And, the fact he shorted it through GS is the whole point. If he hadn’t then there really wouldn’t be much of an issue aside from GS being upfront with investors about who created the CDO. The fraud part is the entirely because GS knew what Paulson was doing and still marketed the CDO as a good investment to clients.
I bought some shares…*crosses fingers*