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Goldman Sachs doesn’t think anyone cares if it is betting against a security it is trying to sell

Posted on | April 27, 2010 | 2 Comments

“What clients or customers are buying is they are buying an exposure,” Blankfein said. “The thing we are selling to them is supposed to give them the risk they want. They are not coming to us to represent what our views are. They probably, the institutional clients we have, wouldn’t care what our views are. They shouldn’t care.”

From http://www.businessweek.com/news/2010-04-27/blankfein-says-firm-has-no-obligation-to-disclose-own-position.html

Oh? I’m sure the buyers of the failed CDOs in question from Goldman Sachs don’t agree with that statement! This surprisingly short sighted defense from the CEO of Goldman Sachs could do more long term damage to the firm than anything else I’ve heard so far. Banks like GS, as market makers, actively market the assets they are creating including the CDOs in question.

Now everyone will second guess their intentions when Goldman comes calling.

Comments

2 Responses to “Goldman Sachs doesn’t think anyone cares if it is betting against a security it is trying to sell”

  1. DEPOPULIST
    April 27th, 2010 @ 11:24 pm

    RT @dmarks007: New post! : Goldman Sachs doesn’t think anyone cares if it is betting against a security it is trying to sell http://bit. …

  2. DEPOPULIST
    April 27th, 2010 @ 11:24 pm

    RT @dmarks007: New post! : Goldman Sachs doesn’t think anyone cares if it is betting against a security it is trying to sell http://bit. …

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