Tuesday, December 4, 2007

Lawsuit anyone?

The Long and Short of It at Goldman Sachs

So Goldman's was selling securities to investors and then turning round and shorting them!? What is this except fraud? How would you feel if you were sold something which was labelled one thing (in fact you are promised it is one thing) and then the salesperson goes and bets against you for being stupid enough to buy this thing? You'd want blood!

Posted by lvmreader @ 07:24 AM (634 views)
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5 thoughts on “Lawsuit anyone?

  • A true ‘Ratner’ moment! For those who don’t know the story – Gerald Ratner was CEO of the jewellery chain of the same name said in a major speech that ‘Most of their products were crap’ – you can guess the result. He was sacked and the whole chain went bust. Unbelieveable – this would be enougth to bring down most firms. Hope they have something like the Commons Select Committee in the US. Is this another enron?

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  • japanese uncle says:

    Why not sending all officers of GS including Paulson to Guantanamo Bay as suspects of this act of unprecedented financial terror with much bigger impact/implication to the wider society than a few suicide bombers? I don’t care a shXt if they are tortured to death in the process of interrogation, for the sake of the financial (or may be physical) safety of the general public.

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  • japanese uncle says:

    Sorry correction:

    Please read “a few suicide bombers” as “a few suicide bombers on return tickets”

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  • No. Caveat Emptor applies. If you believed, as a punter or asset manager, that the securities were good enough to put your and your clients money into, based on your own due diligence and expertise, then it’s your trade. NB – the GS research saying securities of that type were not such a good buy would also have been available to the investors.

    To illuminate – if you’re out to buy a car and the salesman says it’s a great car and you should buy it, do you do so automatically? Even if there’s a guy sitting in the corner of the store comparing all the cars across the market and pointing out the one that the salesman says is great actually has a bit of risk to it? If you do, then you deserve what you get!

    Japanese Uncle – you’re a lovely fellow aren’t you?

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