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The evidence is that they made a one-way bet with an insurance company, rather than a hedge with a derivatives trader. That's like buying fire insurance for a
by Daniel_Newby 17y ago
The evidence is that they made a one-way bet with an insurance company, rather than a hedge with a derivatives trader. That's like buying fire insurance for a smoking building that somebody else owns.
They knew anybody with a few $100k could buy a AAA rating -- they were buying them themselves.
- yummyfajitas 17y agoThe evidence is that they made a one-way bet with an insurance company, rather than a hedge with a derivatives trader. That's like buying fire insurance for a smoking building that somebody else owns. You are accusing Goldman of speculation, not fraud. Incidentally, insurance is a derivatives contract. Any insurance company is a derivatives trader, AIG Financial Products in particular.