Goldman criticised over CDO after SEC lawsuit

goldman-sachs

A former senior official at ACA Capital Management, the portfolio selection agent of the CDO, says the firm would not have been involved in the transaction if it knew the deal's sponsor – the New York-based hedge fund Paulson & Co, which also had a say in the selection of the underlying assets – was planning to short the residential mortgage-backed securities (RMBS) contained in the portfolio.

"If we knew somebody was specifically trying to direct us to bonds they thought were weak, then we woul

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: