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Cheating Advice for Goldman Sachs

Jeff Kreisler | Posted 05.25.2011 | Business
Jeff Kreisler

As the trial approaches, destroy the evidence.

Wall Street Journal Taking Moral Low Ground on SEC vs. Goldman

Diane Tucker | Posted 05.25.2011 | Media
Diane Tucker

The WSJ's editors, hellbent on proving they are visiting from Alpha Centauri, defend the actions of Goldman as "more a case of hindsight bias than financial villainy."

The Goldman Sachs Scam Reveals the Rot in our Financial System

Les Leopold | Posted 05.25.2011 | Business
Les Leopold

The real story goes far beyond this slimy, insider swindle. If we focus instead on the synthetic collateralized debt obligations sold by Goldman Sachs, we go to the heart of what crashed our economy.

Goldman's Blueprint for Dumping Toxic Assets: How These CDOs Were Designed to Fail

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

While most of these deals remain shrouded in secrecy, one of them, Anderson Mezzanine Funding 2007, Ltd. lays out its blueprint in sufficient detail so that we can pinpoint how and why this transaction's failure was assured.

Arthur Delaney

Goldman Sachs' Alleged Fraud Explained: How It Worked (PHOTOS) | Arthur Delaney | Posted 05.25.2011 | Business

Goldman Sachs defrauded investors by failing to disclose a conflict of interest on mortgage investments it sold as the housing market went sour, accor...

SEC: Goldman Sachs Charged With Civil FRAUD Over Mortgage Securities

AP/Huffington Post | Posted 05.25.2011 | Business

The government has accused Goldman Sachs of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the h...

A Hedge Fund Show Tune: Ditty Lampoons Magnetar's 'Betting Against The American Dream' (VIDEO)

Posted 05.25.2011 | Business

As part of their segment this week on the hedge fund Magnetar, This American Life and Planet Money asked Broadway composer Robert Lopez to write a sho...

Do Business Schools See Why CDOs Are Compared to "Springtime for Hitler"?

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

New reporting offers hard evidence that Magnetar, a hedge fund group based in Chicago, had designed a series of subprime mezzanine CDOs that were all but guaranteed to fail.

Regulating Collateralized Debt Obligations, the Elephant in the Room Untouched by Financial Reform Bills

Louis M. Guenin | Posted 10.24.2012 | Business
Louis M. Guenin

Surprisingly and inexplicably, the Senate and House financial reform bills fail to institute any significant regulation of CDOs. Both bills are entirely silent on synthetic CDOs, and thus have missed the elephant in the room.

Magnetar How One Hedge Fund Helped Keep the Bubble Going

ProPublica | Jesse Eisinger and Jake Bernstein | Posted 05.25.2011 | Business

Several journalists have alluded to the Magnetar Trade in recent years, but until now none has assembled a full narrative. Yves Smith, a prominent fin...

CDO Capital: Banks Fight For Their Right To Keep Buying | By Yalman Onaran and Jody Shenn | Posted 05.25.2011 | Business

June 8 (Bloomberg) -- U.S. banks are fighting to preserve the use of securities that help them appear better capitalized, even as their investments in...

Bloomberg Takes a First Step at Piercing the Veil of Secrecy Surrounding CDOs

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

CDOs remain shrouded in secrecy, their financial reports remain hidden from public view, unavailable to anyone except actual CDO investors. Bloomberg's coup was to pierce that veil of secrecy, and to drill down into the details of one CDO.

Goldman Sachs: Spinning Gold

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

Goldman Sachs claims great risk management skills, while it shirks responsibility for its role in the near collapse of the U.S. economy. The former is a myth, and the latter is a dodge.

ProPublica's (and NY Times') "Untold" Magnetar Story Creates Excuses for Wall Street and Washington

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

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.

New SEC Probe Eyes Trading in Goldman Shares

Dan Dorfman | Posted 05.25.2011 | Business
Dan Dorfman

The SEC has recently kicked off an investigation centering on the trading in Goldman shares that took place right around that April 16th disclosure that clobbered Goldman's stock.

Scott Patterson and Janet Tavakoli Debate: Did Quants or Malfeasance (and Leverage) Cause the Financial Crisis?

Janet Tavakoli | Posted 05.25.2011 | Business
Janet Tavakoli

What really caused the financial crisis? High leverage against assets that could only go down in value -- and the subsequent seize-up of funding due to nervousness about malfeasance.

CDO Independent Director Collects $400K A YEAR-- Just For Signing His Name

Reuters | Matthew Goldstein | Posted 05.25.2011 | Business

...CDOs have been very good to Donald Puglisi, a retired University of Delaware finance professor who remains fond of them. In fact, he and others are...

Michael Lewis's 'The Big Short' Gets Up Close And Personal With Perpetrators Of Financial Catastrophe

Posted 05.25.2011 | Books

Jeff Madrick The New York Review of Books At the Heart of the Crash "The Big Short: Inside the Doomsday Machine" by Michael Lewis Norton, 266 pp., $...

Enron, CDOs and BP - Outsourcing Due Diligence

Gary Liberson, PhD | Posted 05.25.2011 | Politics
Gary Liberson, PhD

Enron, Collateralized Debt Obligations, and BP. From my perspective the common link is that Congress abdicated its responsibilities for oversight to organizations and agencies that were hopelessly riddled with conflicts of interest.

The CDOs That Destroyed AIG: The Big Short Doesn't Quite Reveal What They Knew and When They Knew It

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

It's been eighteen months since AIG collapsed, and Congress has yet to seriously focus on the most important questions: What did they know and when did they know it?

Morgan Stanley Investigation: Fed Looking Into Firm's Mortgage Deals

AP | STEPHEN BERNARD and STEVENSON JACOBS | Posted 05.25.2011 | Business

NEW YORK — Fears of a growing investigation of Wall Street banks sent Morgan Stanley's stock falling Wednesday even as the company said it knew ...

Deficits Are Too Important To Be Left To Governments: Call in Fabulous Fab

Steven Clifford | Posted 05.25.2011 | Comedy
Steven Clifford

Democrats once followed the dictum of FDR aide, Harry Hopkins, "Tax and tax, spend and spend, elect and elect!" In the '80s they discovered Americans ...

Suspicious Timing Surrounding The "De-risking" of AIG's Toxic Obligations

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

There is no way that Congress can understand the AIG bailout without carefully scrutinizing the decision making process behind these specific ratings and subsequent downgrades.

The Times Story On Goldman's Role in AIG's Downfall Is More Damning When Placed In Context

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

Placed in a broader context, the front page story The New York Times is even more damning of Goldman Sachs than readers might realize. Goldman played...

AIG's Banks: Market Makers or Flippers of CDOs?

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

Did Societe Generale ever view its $1.2 billion investment in Adirondack 2005-2 as a buy-and-hold proposition? Or was the bank's original intention to offload the risk on to AIG?