Low Road to High Finance: McClatchy Expose Reveals How Goldman Sachs Sold Off Billions in Mortgage Securities After Anticipating Housing Collapse
Guest: Greg Gordon
Host: Amy Goodman and Juan Gonzalez
A five-month investigation by McClatchy Newspapers has revealed that Goldman Sachs made secret bets against the housing market while simultaneously selling off billions in soon-to-be worthless securities. In 2006 and 2007, the bank reportedly peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in US housing prices would send the value of those securities plummeting.
Greg Gordon, Investigative journalist with McClatchy Newspapers. He just published a multi-part investigation of Goldman Sachs and how it secretly bet against the housing market.
Greg Gordon: How Goldman secretly bet on the U.S. housing crash