Paulson helped Goldman structure the deal and then bet against it, making huge profits when the housing market fell in 2007. But Goldman didn’t tell investors that the hedge-fund firm was involved in putting the deal together, or that it was betting against the structure. Goldman was also notified almost a year ago by the SEC that charges were coming. Blankfein should review his Series 7 exam and brush up on that little document called an 8-K which calls for the admission to shareholders of material fact. Omission is bad, and Goldman omitted. I guess Lloyd felt that honesty would get in the way of doing “God’s work”. Pure sleeze.
Bill Clinton is out this morning saying that Rubin and Summers “mislead” him about derivatives.
My takeaway? The evil squid is a buy.
Monday, April 19, 2010