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vodkazvictim

Why save the world, when you can rule it?
For Fabrice Tourre and found nothing on wiki or Freeones. Is something missing? I would've thought this would have been posted AAAGGGGEEESSSS ago...

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(these pics should be on every hitmans wall)
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(There's a link to an article on him on wiki which mysteriously redirects to itself.... :dunno: )




Abacus mortgage-backed CDOs

According to a 2009 New York Times story by Morgenson and Story, Goldman Sachs created collateralized debt obligations (CDOs), sold them to investors, and then bet short against them. Jonathan M. Egol was named as a 'prime mover' behind the products, called 'Abacus' deals, worth billions. A Goldman worker named Tetsuya Ishikawa was involved in these deals and later wrote a novel called "How I Caused the Credit Crunch". Goldman did 25 Abacus deals from 2004-2008. The article claims Goldman tried to pressure Moody's to rate its products higher than they should have been.

The article also claimed that many mortgage backed CDOs (Abacus, and others) sold by Goldman performed very poorly. It uses the example of the Hudson Mezzanine CDO, which Goldman bet against, but also sold to investors. It also claims that various rules regarding CDO-default pay outs were modified to favor short sellers in 2005.

Goldman claimed that it was simply hedging, not expecting the CDOs to fail. It also said that its investors knew it was betting against the products it was selling to them.[103]

Goldman and one of its traders, Fabrice Tourre, were later sued by the SEC over circumstances surrounding one of these CDOs, Abacus 2007-AC1. (See below in this article) In late 2010 Tourre asked for dismissal of the suit against him based on the repercussions of the Morrison v. National Australia Bank Ltd Supreme Court case, claiming his deals were outside the US and thus not subject to certain US laws.[104][105][106]

See also: Merrill Lynch:CDO controversies, Magnetar Capital
 

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