Tuesday, April 20, 2010

Goldman Sachs

Elliot Ganchrow writes:

As they frequently do, the federal government made a big deal of the complaint that the SEC filed on Friday against Goldman. Yet as today's Wall Street Journal story and editorial explains, the investors who were going long on the subprime mortgages weren't mom and pop, rather they were sophisticated investors. In fact Goldman itself lost money on the investment. It seems that the government did not allow Goldman to respond to the charges (as would be normal) before they were filed. It seems these charges have more to do with the financial regulation bill that is currently before Congress. It wouldn't surpise me if Goldman ultimately beats these charges.