{"id":720,"date":"2010-07-14T10:29:00","date_gmt":"2010-07-14T10:29:00","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/07\/goldman_sachs_coo_says_investm"},"modified":"2022-03-18T14:11:09","modified_gmt":"2022-03-18T19:11:09","slug":"goldman-sachs-coo-says-investm","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/","title":{"rendered":"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients"},"content":{"rendered":"

\t\t\t\tAccording to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its own clients. He says that Goldman Sachs purchased protection against a decline in just 1% of mortgage-backed securities it underwrote since late 2006. Former clients, regulators, and members of Congress are accusing Goldman Sachs of designing mortgage-backed securities that would fail and then betting on their failure to purchase credit-default swaps, which pay out when a default occurs. <\/p>\n

Cohn testified last month before the Financial Crisis Inquiry Commission. He says that in the wake of the serious allegations, the investment firm has examined the $47 billion in residential mortgage-backed securities (RMBS) and $14.5 billion in collateralized debt obligations (CDOs) that the firm underwrote since firm executives began to feel the need to treat the subprime mortgage market with caution in December 2006. He claims that by the end of June 2007, Goldman Sachs held $2.4 billion of bonds from CDOs and $2.4 billion of bonds from RMBS trusts. The investment bank had protection for approximately 1% of the total underwritten. Nearly 60% of the derivatives and bonds in the CDOs were from other institutions. <\/p>\n

The hearing was called to probe the relationship between Goldman and American International Group<\/a> Inc (AIG). The investment bank had purchased CDO protection from the insurer. Billions of dollars in federal funds had allowed AIG to stay in business even though it was facing bankruptcy and a number of the insurer’s counterparties, including Goldman, are believed to have benefited. Cohn has argued that all market participants benefited from the government’s assistance. <\/p>\n

Related Web Resources:<\/strong>
\nGoldman Sachs Shorted 1% of its Mortgage Bonds, CDOs<\/a>, Cohn Says, Business Week, June 30, 2010
\nGoldman’s Cohn: Firm Didn’t Drive Down Mortgage-Asset Marks, Bloomberg.com, June 30, 2010
\nFinancial Crisis Inquiry Commission<\/a>
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

According to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its own clients. He says that Goldman Sachs purchased protection against a decline in just 1% of mortgage-backed securities it underwrote since late 2006. Former clients, regulators, and members of Congress […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3742,3743,3752,3754,3753],"tags":[],"class_list":["post-720","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-credit-default-swaps","category-financial-firms","category-goldman-sachs-1","category-mortgage-backed-securities"],"yoast_head":"\nGoldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients — Investor Lawyers Blog — July 14, 2010<\/title>\n<meta name=\"description\" content=\"According to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its — July 14, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients — Investor Lawyers Blog — July 14, 2010\" \/>\n<meta name=\"twitter:description\" content=\"According to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its — July 14, 2010\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients — Investor Lawyers Blog — July 14, 2010","description":"According to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its — July 14, 2010","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/","twitter_card":"summary_large_image","twitter_title":"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients — Investor Lawyers Blog — July 14, 2010","twitter_description":"According to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its — July 14, 2010","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients","datePublished":"2010-07-14T10:29:00+00:00","dateModified":"2022-03-18T19:11:09+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/"},"wordCount":336,"articleSection":["Collateralized Debt Obligations","Credit Default Swaps","Financial Firms","Goldman Sachs Group, Inc","Mortgage Backed Securities"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/","url":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/","name":"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients — Investor Lawyers Blog — July 14, 2010","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2010-07-14T10:29:00+00:00","dateModified":"2022-03-18T19:11:09+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"According to Goldman Sachs Group Inc. Chief Operating Operator and President Gary Cohn, the investment firm adamant that the bank did not bet against its — July 14, 2010","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-coo-says-investm\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Goldman Sachs COO Says Investment Firm Shorted 1% of CDOs Mortgage Bonds But Didn\u2019t Bet Against Clients"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-bC","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=720"}],"version-history":[{"count":2,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/720\/revisions"}],"predecessor-version":[{"id":24726,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/720\/revisions\/24726"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}