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How Goldman Won Big On Mortgage Meltdown

First Posted: 03/28/08 03:45 AM ET Updated: 05/25/11 01:20 PM ET

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Goldman Sachs

Wall Street Journal:

The subprime-mortgage crisis has been a financial catastrophe for much of Wall Street. At Goldman Sachs Group Inc., thanks to a tiny group of traders, it has generated one of the biggest windfalls the securities industry has seen in years.

The group's big bet that securities backed by risky home loans would fall in value generated nearly $4 billion of profits during the year ended Nov. 30, according to people familiar with the firm's finances. Those gains erased $1.5 billion to $2 billion of mortgage-related losses elsewhere in the firm. On Tuesday, despite a terrible November and some of the worst market conditions in decades, analysts expect Goldman to report record net annual income of more than $11 billion.

Read the whole story: Wall Street Journal

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The subprime-mortgage crisis has been a financial catastrophe for much of Wall Street. At Goldman Sachs Group Inc., thanks to a tiny group of traders, it has generated one of the biggest windfalls the...
The subprime-mortgage crisis has been a financial catastrophe for much of Wall Street. At Goldman Sachs Group Inc., thanks to a tiny group of traders, it has generated one of the biggest windfalls the...
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HUFFPOST SUPER USER
VivaZapata
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07:12 AM on 12/16/2007
The article is total bull. Goldman Sucks profited because they have the inside dope on how the fed will go and invest accordingly. They did to the sub prime lending sleaze buckets what the sleaze buckets did to the sub prime mortgage holders. The economy is a house of cards. Three card monte anyone?
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