Accounting & Investing Info for San Antonio A & M
When a Wall Street firm sells a financial instrument it creates, who is the client?
Grethchen Morgenson and Louise Story take a look at the CDOs Goldman and other created for clients.
Then the firms bet against the very securities they sold. In fact they created ways to leverage their bets against the client holdings even higher.
I have not kept up with the whole Goldman story, but while I was reseaerching I stumbled upon some interesting information about Goldman in a recent atrile from NY Times. From what I know little knowledge of is that Goldman had some very succesfull traders and investment bankers Wall Street has seen. Now while reading the article I was very surprised to read about how quickly they were able to bounce back from the huge economic crisis. It Goldman less than a year to say that they were healthy enough to go on without any more bailout funds from the government. It was amazing how quickly they turned things around from September 2008 till April 2009. It seemed that in every quarter Goldman increased. The question I raised is how is one to gain that much revenue in a short period of time. Your taking about well over million dollars every month in profits just to say your healthy enough to resotre order, and to do it at time of suffering.
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A million in profits a month, Aaron, their bonuses are nearly that, for every employee! The Treasury Secy a former Goldman CEO bailed out AIG who bailed out goldman who ducked and became a commercial bank which got billions in tarp money which they invested at the bottom of the market and made billions, on our TARP money, meanwhile betting against their clients on derivatives they sold the clients, and then, having made all the trading profit with our money, voted themselves bonuses.
Classic comment
And they call us a mob
Lucky Luciano after a tour of the NYSE floor..
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Professor Elam 
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