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From the article, the client was facing bankruptcy and would probably have signed anything that - I´m guessing Goldman Sachs, since apparently none of the big l
by neffy 10y ago
From the article, the client was facing bankruptcy and would probably have signed anything that - I´m guessing Goldman Sachs, since apparently none of the big legal firms was prepared to touch the case - put in front of them.
But even if that wasn´t the case, a lot of finance is essentially "robbery by math", by people who can do complicated calculations and figure out ways to route things around the financial system with weird financial instruments, from people who can´t, and who also have the Donald Duck $ sign in front of their eyes blinding them.
- maxerickson 10y agoFor that example the premise would then be that an organization large enough to throw away $48 million a year is incapable of seeking a sophisticated agent that will act in the interest of the organization. Maybe the problem is that such an agent doesn't exist. But if such deals are really commonplace it's a pretty sweet opportunity for there to be no one taking advantage of it.
- neffy 10y agoBlatant cancelling issues, one would certainly hope so - but the original structure that got them into trouble was much more problematic. (Similar to some of the shenanigans within the US btw. that got a few counties into trouble.) fwiw - the ability to think through that kind of structure appears to be a lot commoner in computer scientists and similarly trained engineers, than it does in economist/finance types - but even there, it´s not exactly common. You have to be able to juggle inverse foreign exchange relationships against some knowledge of trading and banking relationships within and between countries, and project over time. It´s a distributed systems problem if you think it through - and we all know how easy those are to troubleshoot.