It has nothing to do with destroying their reputation. Major financial institutions have developed a lot of structured products that are not marked to market, but rather to financial models. There is no lying involved, should they try to sell these "assets" they would of course realize huge losses, until then the model pricing is in. If the shit hits the fan, there will be a usual excuse, âoh my god, we had no idea our models were erroneousâ, âthis situation should only happen once in a million yearsâ and so on.
Pthh goldman stock isnt down much at all, which means that story is MOOT People get paid to write the dumbest shit