Udhay Shankar N wrote: [ on 10:27 AM 12/22/2007 ]
I'm curious -- how come many more firms didn't pursue such a hedging strategy?
Udhay
http://online.wsj.com/article/SB119759714037228585.html
The subprime-mortgage crisis has been a financial catastrophe for
much of Wall Street. At Goldman Sachs Group Inc., thanks to a tiny
group of traders, it has generated one of the biggest windfalls the
securities industry has seen in years.
Michael "Liar's Poker" Lewis has an interesting update on this,
asking, among other things, the same question I did.
http://www.bloomberg.com/apps/news?pid=20601039&sid=aEXlKAu61sYU&refer=home
<q>
What's odd about the subprime crash is Goldman Sachs Group Inc. A
single firm took a position contrary to the rest of Wall Street.
Giant Wall Street firms are designed for many things, but not,
typically, to express highly idiosyncratic views in the market.
Even more surprising is how little Wall Street seems to have dwelled
on how and why Goldman Sachs made its killing. There are insane
conspiracy theories -- for instance, that former Goldman chief
executive officer and current U.S. Treasury Secretary Henry Paulson
tipped his old pals, etc. (But then, how did HE know?)
</q>
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((Udhay Shankar N)) ((udhay @ pobox.com)) ((www.digeratus.com))
