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Goldman
Sachs: Spinning Gold
Huffington Post - April 7, 2010
By
Janet Tavakoli
Goldman Sachs: Don't Blame Us
Business Week (print edition
Cover Story) - April 14, 2010
By Roben Farzad
To Tavakoli, Goldman was, in some cases,
able to take advantage of a flaw in the
CDO system: AIG wrote credit protection
on the basis of a mythical triple-A rating,
while Goldman's calls on AIG's cash were
based on its reality-tested valuations
of the underlying mortgages. In other
words, Goldman could quickly squeeze
AIG for cash by marking down the mortgages
underlying a CDO insured by a credit-default
swap from AIG. Goldman created a no-lose
situation for its clients, at AIG's expense.
[Hard-working taxpayers picked up the
tab, and we should revisit this with
Goldman and all of AIG’s trading
partners.]
End of Excerpt
Janet Tavakoli's book
on the global financial meltdown and how to fix it is Dear
Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (Wiley
2009)
Janet
Tavakoli is the president of Tavakoli
Structured Finance, a Chicago-based firm
that provides consulting to financial institutions
and institutional investors. Ms. Tavakoli
has more than 20 years
of experience in senior investment banking
positions, trading, structuring and marketing
structured financial products. She
is a former adjunct professor of derivatives
at the University of Chicago's Graduate
School of Business. She is the author of: Credit
Derivatives & Synthetic
Structures (John
Wiley & Sons,
1998, 2001), Structured
Finance & Collateralized
Debt Obligations (John
Wiley & Sons, 2008).
Janet
Tavakoli's book on the global financial meltdown is Dear
Mr. Buffett: What An Investor
Learns 1,269 Miles From
Wall Street (Wiley 2009)
Clients
of Tavakoli Structured Finance
have the benefit of proprietary consultation, which is
not available in any other paid or public forum. Clients
also commission proprietary research and analysis.
TSF
makes some information available to the general public. Please
click here for other articles.
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