Don’t Pity Goldman’s Victims

John Carney has a great piece in the Daily Beast pointing out that the alleged victims of Goldman Sachs were hardly victims:

The crucial question in the SEC’s case against Goldman is whether Rhineland should have been told that Paulson was ultimately the short-seller in this deal or that he had played an important role in selecting the securities that went into Abacus. While it’s not clear that in 2007 anyone would have been worried about a little-known hedge fund being short a deal if they weren’t already worried about Goldman being short, Rhineland certainly should have asked how the portfolio was constructed.
So why didn’t Rhineland—or the managers who controlled it from Dusseldorf—make these inquiries? Most likely, because IKB was playing the game even more aggressively.

Fortunately, David Letterman has Goldman’s Top 10 excuses:

Posted by on April 22nd, 2010 at 11:54 am


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