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Reply to "Banks bet against US cities and States"

quote:
Originally posted by Fighting Illini:
Wall Street got burned badly because of the secondary housing market, not because of shorting to hedge their investments. Hedging is a way to minimze the risk. This financial reform is a joke because Fannie and Freddie, which are the main culprits of our current ecomomic situation, aren't even discussed in the bill. If you get rid of Freddie and Fannie guaranteeing crappy loans, banks will start underwriting better since they will be accountable for them.


So your position is Wall Street is a victim in all of this?

Did you watch any of the Goldman Sachs hearings yesterday on Capitol Hill?

Senator Levin dropped the S-bomb four times (I think) for effect - and it worked - to describe the internal Goldman Sachs memo.

So Goldman Sachs sold a Timberwolf investment to a client and said in the memo: "Boy, that Timberwolf investment was one S-bomb deal."

No, clearly they didn't put profit ahead of clients' interests at all. The Goldman Sachs employees are the victims.

I wonder if I was trying to sell you such an investment and described it to YOU as "one S-bomb" deal, would you still want to buy. I'm guessing no.

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