Following a recent New York Times story in which R&R Consulting‘s Sylvain Raynes criticized Goldman’s CDO arrangements on mortgage-backed securities, McClatchy Newspapers have published their own expose on the details of one revealing Goldman deal. Commenting on this transaction, Raynes says it was tainted by “a potentially huge conflict of interest” that “cannot be addressed by standard prospectus disclosures.” He added that the deal allowed Goldman to “easily and selectively sell the riskiest securities into the deal with no oversight from anyone” and still “collect 100 cents on the dollar.”
Read the full McClatchy story by Greg Gordon, “Details of one Goldman deal reveal lopsided conflicts,” December 30, 2009.
For other follow-ups on the Goldman controversy, see Louise Armitstead’s “Goldman defends shorting its CDOs” in the Sydney Morning Herald, and “Goldman Sachs denies betting against its clients on CDOs” in the UK Telegraph, as well as “Wall Street Crime Blockbuster: Goldman’s Lucrative Bets Against America,” by Ward Harkavy in The Village Voice.
