Monthly Archives: April 2010

Op-Ed Contributor – Meet the Real Villain of the Financial Crisis. – NYTimes.com

TODAY, we will have the pleasure of watching outraged members of the Senate Permanent Subcommittee on Investigations fire questions at a half-dozen executives from Goldman Sachs. The firm first attracted anger for its return to making billions, and paying its … Continue reading

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A Vigorous Defense of CDSs and Goldman

Download 2010-4-28 Holman Jenkins: Is Financial Innovation the Enemy The CDO was not "designed to fail." The securities that failed were the simple, wholesome straightforward mortgages that the CDO "referenced," which were designed to extract a fair return from people … Continue reading

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Krugman: Berating the Raters

From Paul Krugman in the NY Times: Berating the Raters [T]he e-mail messages you should be focusing on are the ones from employees at the credit rating agencies, which bestowed AAA ratings on hundreds of billions of dollars’ worth of dubious … Continue reading

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The Misguided Attack on Derivatives – WSJ.com

Download 2010-4-26 The Misguided Attack on Derivatives – WSJ.com How derivitatives increase market efficiency.  Several excellent points in this article. After years of finger pointing for the housing bubble and credit crisis, from Washington to Wall Street and back, the … Continue reading

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Goldman Sachs Messages Show It Thrived as Economy Fell – NYTimes.com

Justin Lane/European Press Photo AgencyLloyd Blankfein, left, the chief executive of Goldman Sachs, and Gary Cohn, the president, waited for President Obama’s speech about financial reform at Cooper Union on Thursday. via www.nytimes.com

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The Busted Homes Behind a Big Bet

Download 2010-4-22 Underlying Goldman Deal, a Different Set of Risk-Takers – WSJ.com The government's civil-fraud allegation against Goldman Sachs Group Inc. centers on a deal the firm crafted so that hedge-fund king John Paulson could bet on a collapse in U.S. housing … Continue reading

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Rating Agencies Shared Data, and Wall St. Seized on It – NYTimes.com

Raymond W. McDaniel Jr., chairman and chief executive of Moody’s, left, and Kathleen Corbet, former president of Standard & Poor’s, testified before the Senate’s Permanent Subcommittee on Investigations on Friday. via www.nytimes.com

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Ties to Abacus Deal Cost Bankers $840 Million – NYTimes.com

That decision set off a chain of events that left the Royal Bank of Scotland Group — to many Britons, a symbol of the excesses that brought the financial world to its knees — as the biggest loser in the … Continue reading

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Senate Panel to Release Documents in Inquiry of Ratings Agencies – NYTimes.com

WASHINGTON — As the housing market began to falter in 2006 and the risks embedded in Wall Street’s giant collective bet on subprime mortgages became apparent, a sense of omen filled the corridors of Standard & Poor’s and Moody’s Investors … Continue reading

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Questions for Banks That Put Together Complex Deals – NYTimes.com

But now, after so much financial pain, Wall Street is nervously tallying the potential legal costs from its misadventures in collateralized debt obligations, known as C.D.O.’s, among the most toxic financial instruments ever devised. via www.nytimes.com Notice the tone in … Continue reading

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