Incorrect. Goldman didn't just broker this product, they helped construct it. During this process, they allowed Paulson and Co. to add RMBS's to the product tha

Incorrect. Goldman didn't just broker this product, they helped construct it. During this process, they allowed Paulson and Co. to add RMBS's to the product that they knew Paulson was short on. It is not their job to take one side or the other, but it is absolutely their job to represent the true nature of the product they are selling. And the fact that the product was constructed specifically so that its creators would profit hugely from its demise is incredibly important material information. > Goldman may have even thought Paulson & Co were the fools Wrong. The entire point of this case is that GS knew two facts: Paulson & Co. helped construct the fund, and they also held a short position. GS is smart enough to know that someone who shorts their own product is not a fool, they're a con man. Or as Goldman probably saw it, a shrewd businessman.