Smoking Gun Time for Goldman: Emails Confirm "The Big Short"

[laughingliberal]

Goldman Sachs Emails: Firm Had 'The Big Short' As Economy Fell


As homeowners were falling behind on their subprime mortgages, wreaking havoc for investors that owned slices of their mortgages in securities peddled by Wall Street, Goldman Sachs was "well positioned," according to internal company emails by top executives.

The firm had "the big short," declared chief financial officer David Viniar -- Goldman Sachs was making money off the souring of the very securities they had peddled to the market.

The internal emails released Saturday by the Senate Permanent Subcommittee on Investigations paint a picture long known by most of the country, yet never before so vividly and explicitly articulated by Goldman officials. (Scroll down to see the full text of the emails.) As early as May 2007, as homeowners were being crushed under the weight of subprime mortgages, the most profitable firm on Wall Street had long taken out a form of insurance on those delinquencies.

The firm made money on the upside -- originating, securitizing and selling subprime mortgage-based securities to investors -- and on the downside, thanks to the insurance.

More at link: http://www.huffingtonpost.com/2010/04/24/goldman-sachs-emails-big-short_n_550547.html

[Mari333]

1. knr

[laughingliberal]

2. I think they're going down. nt

[Pharlo]

3. Going down?

Nah! The government will 'investigate' (wink, wink, nudge, nudge) for a year or so making certain there is a major PR blitz covering the government 'investigation'. Then, the govt will 'conclude' that while the actions of Golman Sachs were 'controversial' or even 'ethically questionable', they were 'legal'. Then, after everything calms down, Goldman Sachs will quietly change their name to 'Xe - Redux', then continue business as usual. And, eventually, the individuals in the government who gave Goldman Sachs a pass will become highly paid 'Xe - Redux' executives. It's the new 'American Way'.

Move along folks, nothing to see here.

[WhiteTara]

4. when do they all do the perp walk?

Or will this be just like all the other perp walks we didn't see?

[tblue37]

5. Why do people crow about their bad behavior in emails? Why don't the bad

guys realize that a paper trail or email trail can bite them in the ass?

[Raster]

6. It's time for the Federal government to do an "Arthur Anderson" on Goldman Sucks.

[Delphinus]

7. Remind me what that means?

It's been soooo long. TIA