The case against Goldman
Just finished reading a good piece on the Goldman scandal. It begins like this:
"The brouhaha over Goldman Sachs revolves around the role of hedge-fund manager John Paulson. Jacob Goldstein at Planet Money nicely summarizes the SEC’s charges: “The SEC says Goldman Sachs defrauded investors in a CDO, one of those complicated bonds that lost huge amounts of value when the housing market went bust. The problem isn’t that this CDO lost value. It’s that a hedge fund played a role in choosing what went into the CDO, then bet against it — and Goldman didn’t tell people who invested in the CDO about the hedge fund’s role, according to the SEC.”
You can find the rest here, which I pass along for your edification. This story won’t be going away for a while.