The New York Times reports investigators in the U.S. Congress at the Securities and Exchange Commission and at the Financial Industry Regulatory Authority have launched probes into Goldman Sachs and other Wall Street firms for deliberately selling risky structured securities to clients, and then betting on the securities failing.
The probes are looking at how Goldman Sachs, Morgan Stanley, Deutsche Bank and other Wall Street firms profited off complex mortgage-based securities — known as synthetic collateralized debt obligations, or C.D.O.’s. Pension funds and insurance companies lost billions of dollars on such securities that they believed were solid investments.
Continue reading Goldman Sachs Faces Probe Over Betting On Housing Market Crash
