I have covered on the Radio Show the on-going subject of SEC civil accusations and Justice Department criminal investigations into Goldman Sachs accusations that it misled investors with respect to the Abacus collateralized debt obligations that it helped bundle, sell, and then shorted them, because they were designed to fail. I have not written about it, because I do not like just repeating what others have to say.
If you want to get a good, in depth feel for what Goldman Sachs is accused of doing and how it conducts business, Felix Salmon has done extensive posts on the subject. If you go to his blog and type in "Goldman Sachs fraud" in the blog search box, you will find a list of articles. You can also search for "Abacus". You could also search the blog naked capitalism for the same subjects plus "Magnetar", which is a Chicago hedge fund that managed to sell investments which dramatically and consistently tanked.
If you want to understand how CDOs work and how they were used and how their sale may have been misleading in how they were packaged and sold in the Abacus offering, you should use the blog search at interfluidity, which describes these CDOs in technical detail.
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Thursday, May 20, 2010
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The above appears to be on-going litigation and the reader should view the detailed information at the above web address to form your own opinion as to merit.
ReplyDeleteI have, on several occasions, commented on Federal and some State court decisions which have thrown out foreclosures because the mortgages had not been changed to reflect the correct owners after being transferred via a derivative bundle.
Felix Salmon in a post today comments on a Litton withdrawal from foreclosure:
http://blogs.reuters.com/felix-salmon/2010/05/21/good-news-friday-litton-withdraws-in-ohio/