A McClatchy journalist has published an article describing the apparent conflicts of interest that exist within Goldman Sachs.
Goldman has materially benefited from its short positions on U.S. housing-related assets. These short positions were created for the firm's own accounts.
At the same time, Goldman served as a distributor of the same housing-related assets, aiding many of its institutional clients in establishing meaningful long positions in an asset class for which the firm presumably held bearish views.
The McClatchy investigation has found that "Goldman's failure to disclose that it made secret, exotic bets in an imminent housing crash may have violated securities laws."
Source: McClatchy
Glossary:
Key Phrases:
- Log in to post comments
