Goldman Sachs Mortgage calculates Said to absorb Probe of governors
24. December (check aktiencheck.de AG) – The U.S. Securities and Exchange Commission and brokerage regulators, such as the Wall Street firms bet against the mortgage-linked securities market took as its customer loss of profit, said people familiar with the matter.
The Financial Industry Regulatory Authority, the policies of broker-dealer shall, if known firms such as Goldman Sachs Group Inc. rules when selling products as synthetic collateralized debt obligations, one of the persons who broke said. The people declined to be identified because the investigation is confidential.
One focus of the investigations is whether the companies deliberately combined the resources to meet the likely mortgage default, allowing customers to which billions of dollars in losses if the housing market collapsed, while the establishment of short positions that would profit from the decline in the New York Times said in a report today.
The synthetic CDOs currently not reviewed generally contain the actual mortgage, “said the Times. Instead, the CDO pooled credit default swaps, a type of insurance that an investor may require to pay on one side of the contract, on the other hand, if the debts in default. Bet New York-based Goldman Sachs and Morgan Stanley are among firms that create products for customers, then that would be the underlying assets fail, the Times said, citing unidentified traders.
“Many of the search for synthetic CDOs were arranged the result of demand from the investment customers long exposure,” Goldman said in a statement on its website in response to the Times. “The buyers of synthetic CDOs, mortgage were large, well-informed investors, workers and researchers do not” rely on the central banks in their investment decisions, “said the bank. Goldman investment losses on mortgages would have been greater if it is not hedged items, “said the statement.
Morgan Stanley spokesman Mark Lake, SEC spokesman Kevin Callahan and Brendan’s Finra brendan declined comment.
- With the help of Linda Shen and Peter oak tree in New York. Editors: Rick Green, Dan Kraut
To dscheer@bloomberg.net reporter on this story: David Scheer in New York, +1-212-617-2358 or.
To contact the editors responsible for this post: Alec DB McCabe in New York, +1-212-617-4175, or amccabe@bloomberg.net; Rick Green in New York, +1-212-617-5804, or rgreen18@bloomberg.net .
Tags: Alec DB, Bet New York, bloomberg, Brendan, CDOs, central banks, check, collateralized debt obligations, credit default swaps, customer loss, Dan Kraut, David Scheer, December, default, financial industry regulatory authority, Goldman, goldman sachs, goldman sachs group, goldman sachs group inc, investment, investment losses, Kevin Callahan, Linda Shen, Mark Lake, market, Morgan, morgan stanley, mortgage, mortgage default, New York, Peter, Rick Green, Sachs, sachs group inc, securities and exchange commission, spokesman, Stanley, statement, Times, U.S. Securities, Wall Street,Related Video
|
|
- December 25th