Wednesday, April 13, 2011

Senate Panel Says Goldman Misled Clients, Lawmakers on CDOs (1)

From Bloomberg.

April 13 (Bloomberg) -- Goldman Sachs Group Inc. designed, marketed and sold collateralized debt obligations that misled investors and created conflicts of interest as the company built short positions before the U.S. housing market collapsed, a Senate panel said in its report on the financial crisis...

...The Senate report also faults Deutsche Bank AG, saying the Frankfurt-based company created a $1.1 billion CDO with assets that its traders referred to as “crap” and then attempted to sell “before the market falls off a cliff.”

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