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Dave, I agree with you now.
If synthetic CDO is just a side bet, why do they need so much paperwork! Lawyers suck.
Some have argued that the entire derivatives category should be regulated. I suppose we might see that.
Doesn’t matter who put it together, ACA opined on it and that’s all the clients wanted. Remember, these were QII (Qualified institutional Investors) clients buying an unregistered product.
Oooh, nevermind. I’m totally wrong and M4l is totally right. Here’s a great explanation:
http://seekingalpha.com/article/199877-why-the-synthetic-cdo-matters-in-the-goldman-sachs-case
Judge Baby rules that the failure to say Paulson and not ACA put together the thing is NOT material. GS wins.
^^^^^^^^^^^^^
Just to beat cobble to the punch, yes that was snooty.
“the SEC ain’t agreeing with you guys.”
That’s nice. The SEC staff spent most of the crisis watching trannie porn in the office.
The fact that you are all offering your opinions on this matter on a Brooklyn based real estate blog demonstrates that Goldman Sachs has already lost the more important battle. If I were still driving cross-country I’m sure I could listen to truckers argue with each other about this. I’m quite sure they have views.
“Denton, isnt synthetic CDO’s ALWAYS have a Long and a Short else there’s no transaction?”
Not sure about that, M4L. I think they throw money into the SPE when they set it up to pay out interest so long as they underlying security is paying. Someone please correct me, though.
“Denton, isnt synthetic CDO’s ALWAYS have a Long and a Short else there’s no transaction? ”
Sure M4L but in this case they took the half they planned to act like a short, then dressed it up and sold it as a long, no?
Re: Benson’s solitary, beautiful drive, pick some Saturday night during the summer, and the Metropolitan Museum is all yours.