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Other internal Goldman emails released on Saturday morning by the Senate permanent subcommittee on investigations, which conducted an 18-month-long investigation into the bank, showed that the firm was relieved it had taken short positions as the housing market worsened. When it emerged that the firm had made $50m in one day by taking short positions that gained value as the market for mortgages collapsed, David Viniar, chief financial officer, said in an email: “Tells you what might be happening to people who don’t have the big short.”
In another email, a Goldman manager reacted to the downgrade of $32bn in mortgage backed securities by credit rating agencies by noting that, unlike other investors who were taking heavy losses, the bank had bet against them. “Sounds like we will make some serious money.”
To which a colleague responded: “Yes we are well positioned.”
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Other internal Goldman emails released on Saturday morning by the Senate permanent subcommittee on investigations, which conducted an 18-month-long investigation into the bank, showed that the firm was relieved it had taken short positions as the housing market worsened. When it emerged that the firm had made $50m in one day by taking short positions that gained value as the market for mortgages collapsed, David Viniar, chief financial officer, said in an email: “Tells you what might be happening to people who don’t have the big short.”
In another email, a Goldman manager reacted to the downgrade of $32bn in mortgage backed securities by credit rating agencies by noting that, unlike other investors who were taking heavy losses, the bank had bet against them. “Sounds like we will make some serious money.”
To which a colleague responded: “Yes we are well positioned.”
Read Full Article
