Contrary to recent reports, Magnetar wasn't a previously unknown hedge fund, it did not create the synthetic CDO structure, and the magnitude of its role in the subprime crisis has been overblown.
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The mark-to-market losses were just one part of the problem. AIG had a grave problem just from this position alone, and AIG had other serious problems.
Did Goldman Sachs dissemble and equivocate in its responses to the New York Times?
Goldman Sachs wasn't the only contributor to the systemic risk that nearly toppled the global financial markets, but it was the key contributor to the systemic risk posed by AIG.
Goldman paid mega bonuses in past years subsidized by selling hot air. Now it proposes to again pay billions in bonuses based on earnings made possible by taxpayer dollars.
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