There is a story in the Wednesday, Christmas Eve 12-24 edition of the New York Times (link here) about certain prominent investment banks like Goldman, Sachs (ticker: GS) selling financial instruments called "collateralized debt obligations" while simultaneously betting against them for their principal trading accounts (meaning Goldman, Sachs could profit if it sold short the very same securities it created and sold to others).
Talk about playing both sides of the fence. This is apparently being investigated.
The article speaks for itself and I need not repeat, paraphrase or even comment on it further. However, it made me think of a prolific baseball hitter, Pete Rose, who was banned from baseball for life for betting against the Cincinnati Reds while he managed them!
Rose must be thinking he missed his true opportunity to cash in, as an investment banker.
0 comments:
Post a Comment