Tails I Win, Heads You Lose

Jonathan Egol is a manager at Goldman Sachs and a smart guy. He created a product that allowed Goldman Sachs investors to short mortgage backed securities. No big deal. Except these were the same mortgage backed securities Goldman Sachs was selling to other investors as sound investments. So when the market collapsed, Goldman Sachs actually stood to profit from the losses suffered by it’s own clients.

Read the whole galling New York Times article here.

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