
What is not being seen or talked about en mass via the media, is where are the large lawsuits and counter party claims that usually unfold from such a situation. I am assuming that at some point, Goldman should be several tranches of lawsuits from all this. Caveat Emptor aside, the big issues for Goldman in defending itself is:
Goldman said it made money in the third quarter by shorting an index of mortgage-backed securities. That prompted Fortune to ask the firm to explain to us how it had managed to come out ahead while so many of its mortgage-backed customers were getting stomped.
I would like to see what the Eliot Spitzer's of the world think of this situation. I'm sure more is about to unfold.
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