The Subprime mortgage market blew up, CDO's, CMO's and CDS' blew up, companies imploded and Goldman Sachs walked away with $13 billion.
It is clear Goldman Sachs for one was in an odd position as they were selling these complex, toxic securities to their clients and then subsequently shorting the entire mortgage market for their own account by purchasing credit default swaps to the tune of $13 billion from AIG.
It is no wonder taxpayers were upset when they were reimbursed 100% by the government through AIG on their credit default swaps and then subsequently were paid huge bonuses for the firm's performance. They get $13 billion + big bonuses, the taxpayers get a firm that sells toxic assets to clients, then buys billions to ensure themselves when the toxic assets explode. Genius. The new gold standard.
Perhaps they should pay back some of the $13 billion? Since Hank Paulson was CEO of Goldman Sachs prior to becoming Treasury Secretary, it suggests the possibility of some favoritism. We certainly need smart guys in gov't jobs. The SEC serves as a training ground for the young smart ones to enter the system, get trained, then find a better paying job in the private sector. We need to find a way to keep some of the best and brightest and avoid self dealing and self interest.
who knew what when
aint life a coincidence?
http://www.examiner.com/examiner/x-19964-Newark-Motherhood-Examiner~y2010m2d17-Citimortgage-Aids-Borrowers-in-Foreclosure