Ratings Emails Show Concerns at Rating Firms Over Goldman’s Abacus Deals The dead bodies keep surfacing. It’s now clear the ratings agencies, who were paid for impartial evaluations of Goldman’s Abacus and other CDO deals, had serious qualms. Here...
Tomorrow, Stephen Kovach will guess blog on Acrimoney. Here’s what he writes about what’s in store during our lifetimes. Given that the average life span in the U.S. is approximately eighty years, this also means that the average U.S. citizen lives...
Bank Says Losses Prove No Ill Intent On Monday I posted questions about Goldman Sachs and the CDO that is now a household name: Abacus 2007-AC1. Specifically, I asked: Why did Goldman lose $75 million on this trade, when its negative bets on the housing sector yielded...
Who hasn’t seen the news? The SEC accused Goldman Sachs of fraud, alleging it misrepresented an Abacus CDO. Banks lost $1 billion on the trade. And John Paulson, one of the gods of Greenwich, pocketed that $1 billion through his fund. Here’s what I...
SEC Charges Goldman With Fraud Here’s what The Wall Street Journal reports: According to the SEC, Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection...
What happens when it’s insanely profitable to lose money? Huh? Last Friday, ProPublica described how one hedge fund—Magnetar—invested in the toxic waste from sub-prime mortgages no one wanted. And it made wads of money. The story is long but well worth your...
The New York Times describes my novels as “money porn,” “a red-hot franchise,” and “glittery thrillers about fiscal malfeasance.” Through fiction I explore the dark side of money and the motivations of those who have it, want more, and will steamroll anybody who gets in their way.
The New York Times describes my novels as “money porn,” “a red-hot franchise,” and “glittery thrillers about fiscal malfeasance.” Through fiction I explore the dark side of money and the motivations of those who have it, want more, and will steamroll anybody who gets in their way.