Vampire Squid Fishing

The whole hew about Goldman Sachs and the Abacus 2007-AC1 has gone out of proportion. It seems that Goldman will get away with the charges of fraud leveled against it. But its reputation has been tarnished which is material damage.

The counter parties which SEC claims were defrauded are institutional investors whose managers are paid to make their own judgment when investing. If they made the wrong call then they should be charged, not Goldman. No one should sympathize with ACA or IKB.

Goldman was privy to non-public information due to its role as a market-maker. If it did not disclose that Paulson was shorting the housing market to its other clients; its just ethical business.


About Roy

Ce n'est pas moi
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s