Low Road to High Finance – Goldman Sachs Sold Off Billions

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Democracy Now!
Nov. 4, 2009

Low Road to High Finance: McClatchy Expose Reveals How Goldman Sachs Sold Off Billions in Mortgage Securities After Anticipating Housing Collapse

A five-month investigation by McClatchy Newspapers has revealed that Goldman Sachs made secret bets against the housing market while simultaneously selling off billions in soon-to-be worthless securities. In 2006 and 2007, the bank reportedly peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in US housing prices would send the value of those securities plummeting. We speak to McClatchy reporter Greg Gordon. [includes rush transcript]

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Goldman’s walk on subprime wild side (Part 4)

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The Real News Network

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Goldman climbed into bed with New Century Financial Corp’s unreviewed and off shore deals

Goldman Sachs was among the last Wall Street giants to enter the lucrative world of subprime mortgages, but it didn’t take long before the elite investment house was cutting deals with firms whose reputations would soon be tarnished, at best — companies such as New Century Financial Corp.

[…]

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Goldman left investors holding its subprime bag (Part 3)

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The Real News Network

TheRealNews

Inside investment circular were the details of a secret $2 billion deal channeled through a tax haven.

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Goldman taking away people’s homes

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TheRealNews

The Beckers fell months behind on their mortgage and finally found it was Goldman after their house

In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers that it also was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting. Now, a five- month McClatchy investigation has found that Goldman’s failure to disclose those secret bets may have violated securities laws.

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How Goldman secretly bet on the U.S. housing crash

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By Greg Gordon
McClatchy Newspapers
November 1, 2009

WASHINGTON — In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.

Goldman’s sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled the nation’s premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.

[…]

via How Goldman secretly bet on the U.S. housing crash | McClatchy

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Interview with Greg Gordon

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How Goldman secretly bet on the U.S. housing crash

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Part 2: Goldman taking away people’s homes

Goldman left investors holding its subprime bag (Part 3)

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