Goldman Responds to SEC
Goldman's strongest defense seems to be the fact that they lost more than $90 million on the deal and only received $15 million in fees. Quoting their press release:
"Goldman Sachs Lost Money On The Transaction. Goldman Sachs, itself, lost more than $90 million. Our fee was $15 million. We were subject to losses and we did not structure a portfolio that was designed to lose money."
Thoughts on this and the rest of the press release (linked below)??
I read it when it was released right before the market closed; it makes it sound like they are going to get those individuals that Tourre, according the SEC, "screwed" to testify on their behalf. It's my understand that the SEC has already admitted it can not file criminal charges against GS.
If they file a law wso/">suit, and ACA for example testifies on GS behalf saying they received full disclosure and this is just the SEC trying to show America that they actually do stuff then this will be yet another slap in the face to the SEC and Obamunism.
We should all keep our fingers crossed that this is the case, as it would mean the end of this Bank Regulation Talk and hopefully the end of the SEC. If the republicans can take the House/Senate maybe they'll grow enough balls to impeach Obama.
good one. LOL
it also says they had a "residual long position" on the transaction. Does this mean that they were actually long on the trade, while Paulson was short?
Based on what Goldman is claiming, yes. Goldman was long and that's how they managed to lose $90 million (net loss of $75 million after getting paid $15 million in fees). If what Goldman is claiming is true, I don't think the SEC has much of a case. Why in world would they structure a product to lose when they hold a long position?????
goldman, go sit on the naughty step
though the issue is completely different, I see this being like the UBS battle but much bigger, since politicians couldn't scapecoat UBS as the recession causers in the same way they can now do with sachs.
this is really not a good day for banking - popularity is already at an all time low, restrictions loom...
I don't believe a single word Goldman says. How much did their traders make on buying CDS? Remember that the only reason the government saved AIG so was that they could pay their CDS debts to Goldman. Goldman received $12.9 billion from them.
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