Some financial voyeurism for the weekend – the Senate permanent subcommittee on investigations, having concluded an 18-month-long investigation into Goldman Sachs’s mortgage-related dealings, has now published eight pages of internal Goldman emails.
Click to enjoy…
The subcommittee are not complimentary towards Goldman. Chairman Carl Levin (a Democrat) declared on Saturday:
Investment banks such as Goldman Sachs were not simply market-makers, they were self-interested promoters of risky and complicated financial schemes that helped trigger the crisis…They bundled toxic mortgages into complex financial instruments, got the credit rating agencies to label them as AAA securities, and sold them to investors, magnifying and spreading risk throughout the financial system, and all too often betting against the instruments they sold and profiting at the expense of their clients…These e-mails show that, in fact, Goldman made a lot of money by betting against the mortgage market.
No word back from Goldman. Yet.
UPDATE: Goldman has now responded to these allegations.
Goldman profited on shorts, emails show – FT