Goldman Sachs Question on news---

Discussion in 'Wall St. News' started by riddler, Apr 16, 2010.

  1. riddler


    there was a third party who developed the mortgage backed securities..a hedge fund i believe..why is Goldman in trouble if it was the third party who devised the CDO's and other securities and did the shorting.
    what did Goldman do?
  2. Think about who was on the other side of the trade.

    Hint: it wasn't Goldman

    Hint: would you buy a collection credit that had been specifically chosen as likely to default by one of the best credit traders in the business?
  3. Stok


    It was AIG...that is why Hank (former GS CEO) said we needed to bail them out so they could pay GS and clients :D
  4. riddler


    how did Goldman Gain though? they leta hedgefund pick and structure the securities then that same hedge fund shorted because they chose bad did Goldman gain by this?
  5. Well, how does any business make money?