Here’s the thing that will likely save Goldman from the SEC’s clutches: High-level investing is a complicated endeavor, and as Dan Sparks has just said, investors can “like” a deal and still short it because it makes sense in the context of a broader strategy. Is it ugly and shameful that a bank or banker could sell a likely-to-fail package of synthetic subprime mortgages to a customer in order to allow another one to bet against it? Yes. But should we be surprised? No. Should it be illegal? No.
Posted by Gabriella Stern
on April 27, 2010
Investment Banking, Regulation, Securities & Exchange Commission
Investment Banking, Regulation, Securities & Exchange Commission
April 27, 2010
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