Interesting article

[Sharad M.]

I was reading this article and thought I share with the members.
http://online.wsj.com/article/SB10001424052748703730104576261350208808130.html?mod=ITP_moneyandinvesting_0

From the article:

The report shows how on Dec. 14, 2006, executives gathered in a conference room adjoining the office of Goldman Chief Financial Officer David Viniar. They agreed the firm needed to cut its bullish bets on mortgage bonds.

The Senate report alleges that Goldman then undertook a multibillion dollar series of trades to hedge its bullish bets by selling mortgage-related trades to allegedly unsuspecting investors. The head of Goldman's mortgage unit recommended managers of Goldman's sales force issue "ginormous" sales credits to those who could find investors anywhere in the world.

A Goldman executive found one in Australia. On April 26, 2007, in an email with the subject line "utopia," the executive said, "I think I found white elephant, flying pig, and unicorn all at once.