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>As a corporate client of GS, I don't need data. I need advice. Such as: "Buy these sub-prime assets that we've bundled into CDOs. By the way, we're actively b
by rl3 10y ago
>As a corporate client of GS, I don't need data. I need advice.
Such as: "Buy these sub-prime assets that we've bundled into CDOs. By the way, we're actively betting against you and stand to make a ton of money when they tank."
- qeternity 10y agoBanks are huge, with different divisions. People who spout these types of lines don't actually understand how it works. Plus, there is the whole due diligence aspect. You can't blame anyone else. Also anytime anyone sells you something, they are telling you they think it's worth less than you do. Yet everyone is fine with that in every other industry. Source: hedge fund trader who fights banks all the time, but doesn't agree with their scapegoating.
- cm2187 10y agoThe Viniar explanation is actually quite good (not the "unfortunate to have on email" bit, the 20cent in the dollar bit): https://www.youtube.com/watch?v=ccjZEvBGOuk https://www.youtube.com/watch?v=ccjZEvBGOuk And to be fair to GS (not that it is the widow and the orphan), the "shitty deal" wasn't a reference to the collateral of the CDO, but to the fact that they didn't manage to sell a position on that transaction.