GS advices clients to short CA bonds

Discussion in 'Wall St. News' started by Rocko1, Nov 11, 2008.

  1. Rocko1


    Again, from a news source outside US
    Goldman told clients to short bonds it helped sell: report

    By Tom Bemis

    LONDON (MarketWatch) -- Goldman Sachs (GS:
    Goldman Sachs Group, Inc.)

    proposed that some of its clients bet against California bonds it had collected millions of dollar in fees to help bring to market, according to a published report Tuesday. Goldman made the pitch in a document obtained by ProPublica, a non-profit investigative journalism organization, and the Los Angeles Times which published a joint-bylined story on the practice Tuesday. Goldman's actions were not illegal, according to the report, but the company has stopped suggesting the trading strategy to its clients, a spokesman told the news organizations. End of Story