Let me see if I understand this….GS had input into what securities were placed in these instruments, sold them and made commission, then bet both sides of the fence as to whether they would rise or fall, then leveraged AIG to insure them, as it were, and then leveraged the govt to bail out AIG so they could make more money yet regardless of which way these instruments performed. And, of course, the taxpayer ultimately paid the freight. And THEN, they gave themselves huge bonuses for being such brilliant businessmen.
There is an even bigger question to be asked here. CDSs were not invented by GS. They were developed by JP Morgan Chase. And now that GS is in the hotseat, I have wondered and now I demand to know if these goniffs, like Chase and GS, have been made whole by the AIG bailout. In other words, a security that was a bundle of 1000 mortgages is deemed insolvent and the CDS is executed and the CDS holder is compensated.
My question is this: I don’t believe that ALL the mortgages in the bundle failed, and as Chase forecloses on those unfortunate folks and sells their homes for pennies on the dollar, where does that money go? Back to the issuer of the CDS? To Chase? I smell a rate spelled C H A S E, B of A, M O R G A N S T A N L E Y, and G S. Am I crazy here, or did a relative few people pull one of the most elaborate rip offs in history?
1. Buy a security and sell it to your clients. Get paid.
2. Buy a CDS, probably get a kickback under the table.
3. Call in the CDS, get compensated for the failed security in full, get paid again.
4. Forclose on the mortgagee, sell the asset and get paid again.
Welcome to Wall Street.
Moody and the other ratings bureaus have already testified that it was GS that originated the derivitaves on Sub Prime and Alt A mortgages. They were the ones that were held as experts on rating. So they were able to put any value they wanted on it. And yes, they made a fortune either way.
Let me see if I understand this….GS had input into what securities were placed in these instruments, sold them and made commission, then bet both sides of the fence as to whether they would rise or fall, then leveraged AIG to insure them, as it were, and then leveraged the govt to bail out AIG so they could make more money yet regardless of which way these instruments performed. And, of course, the taxpayer ultimately paid the freight. And THEN, they gave themselves huge bonuses for being such brilliant businessmen.
I call that cheating.
Who is ever going to stand up to these thieves?
No one in the US. Half of our treasure department are former Boardmembers or CEO’s of GS. They will ALWAYS protect their own.
I’m still hoping Greece holds them accountable.
There is an even bigger question to be asked here. CDSs were not invented by GS. They were developed by JP Morgan Chase. And now that GS is in the hotseat, I have wondered and now I demand to know if these goniffs, like Chase and GS, have been made whole by the AIG bailout. In other words, a security that was a bundle of 1000 mortgages is deemed insolvent and the CDS is executed and the CDS holder is compensated.
My question is this: I don’t believe that ALL the mortgages in the bundle failed, and as Chase forecloses on those unfortunate folks and sells their homes for pennies on the dollar, where does that money go? Back to the issuer of the CDS? To Chase? I smell a rate spelled C H A S E, B of A, M O R G A N S T A N L E Y, and G S. Am I crazy here, or did a relative few people pull one of the most elaborate rip offs in history?
1. Buy a security and sell it to your clients. Get paid.
2. Buy a CDS, probably get a kickback under the table.
3. Call in the CDS, get compensated for the failed security in full, get paid again.
4. Forclose on the mortgagee, sell the asset and get paid again.
What a scam. And Madoff went to jail.
Welcome to Wall Street.
Moody and the other ratings bureaus have already testified that it was GS that originated the derivitaves on Sub Prime and Alt A mortgages. They were the ones that were held as experts on rating. So they were able to put any value they wanted on it. And yes, they made a fortune either way.