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Goldman "Grinch" Sachs

|Includes: Goldman Sachs Group Inc. (GS)

Gretchen Morgenson and Louise Story have a long article in The New York Times (here), describing the egregiuos practices of investment banks selling CDO's and then placing bets that the same CDO instruments would fail.  The Grinch was stealing more than Christmas - he was stealing money from pension funds, widows and orphans.  GS was not the only bank that engaged in this practice, but they may have been among the most successful. 

There is a very descriptive graphic accompanying the article.

Click on image to enlarge


Felix Salmon has an article that offers a defense of GS in this matter (here).  If you read his comment stream, you'll see his readers do not agree with his position.  He does present his a case well, but I will side with the commenters.


Disclosure: No positions in GS.