Hi there,

If you think Democracy Now!’s reporting is a critical line of defense against war, climate catastrophe and authoritarianism, please make your donation of $10 or more right now. Today, a generous donor will DOUBLE your donation, which means it’ll go 2x as far to support our independent journalism. Democracy Now! is funded by you, and that’s why we’re counting on your donation to keep us going strong. Please give today. Every dollar makes a difference—in fact, gets doubled! Thank you so much.
-Amy Goodman

Non-commercial news needs your support.

We rely on contributions from you, our viewers and listeners to do our work. If you visit us daily or weekly or even just once a month, now is a great time to make your monthly contribution.

Please do your part today.

Donate

Report: Goldman Sachs Secretly Bet on the US Housing Crash

HeadlineNov 03, 2009

An investigation by the McClatchy Newspapers has found that banking giant Goldman Sachs made secret bets on an imminent housing crash while selling off billions in soon-to-be worthless securities. In 2006 and 2007, the bank reportedly peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in US housing prices would send the value of those securities plummeting. Goldman’s sales and its clandestine wagers enabled the nation’s premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the US and global economies. Only later did investors discover that what Goldman had promoted as triple-A rated investments were closer to junk. By doing so, Goldman Sachs may have violated securities laws. Several pension funds, including Mississippi’s Public Employees’ Retirement System, have filed suits alleging that Goldman and other Wall Street firms negligently made “false and misleading’’ representations of the bonds’ true risks.

The original content of this program is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. Please attribute legal copies of this work to democracynow.org. Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.

Non-commercial news needs your support

We rely on contributions from our viewers and listeners to do our work.
Please do your part today.
Make a donation
Top