Goldman sold mortgage bonds to investors, knowing full well they were rated inaccurately on purpose by the rating agencies. Then behind the scenes, Goldman went to AIG and bought Credit Default Swaps and shorted the very mortgage bonds that they claimed were AAA rated. It's mind boggling how no one went to prison for fraud
@@Built2kill If you buy fire insurance on your home and don't disclose that you know you have a gas leak and a methlab in the basement, guess what, that's illegal. That's fraud. And in 99.9% of cases, you won't get the money anyways when your house eventually does burn down. And not only did these banks get the money from the investors (the "insurance company" in this case), they ALSO got reimbursed for the full cost of the house by the fucking TAX PAYERS. They got paid that money to rebuild the house and instead they pissed on the ashes and bought cocaine and strippers with it like they fucking always do.
That would be basically every state. It’s illegal to have a poker game at your house with your buddies, if you’re playing for money. But you can easily load up Robinhood and borrow money instantly from them on margin and make insanely risky bets with your entire life savings in about 25 minutes time, and lose everything before the end of the trading day.
@@5urg3x I think you bring up a great point with how they chose to have laws on the book they dont enforce, but will enforce when they want to. If they unlawfully entered someones home who happend to be playing poker and they wanted to trump up charges, they would definately included illegal gmbling in the charges.
GS was describing the game as it was, but the people who made the bets and lost money did not want to own up the responsibility. The public who was hurt were eager to see heads rolling. GS was unscratched and left standing after the crisis hence the perfect scapegoat. Sensing a great opportunity to be popular with voters, politicians of all colours jumped at the bankers trying to be seen doing something for the average joe, who had no idea who was at fault or had any inclination to learn the details while their tax money is being channelled to the bankers by the politicians. Their systems are so full of conflicts, the bankers, the rating agency, the regulators and politicians. The whole thing has always been a circus and always will be.
Yes they provided a security for the housing market, but that is not the issue, the ISSUE is that they made it seem like a good security, but in reality it was GARBAGE. They committed fraud plain and simple.
Brett Sylvester well you are Right about the Securities, But they did advertise their product wrong ( in this case the advertised them with a tripple A Rating when in fact They were utter shit ( which was just possible because of the bribing of the finincial service authorities )). It definitey was a fraud. But i do as well agree with you that you should know about the product you buy, especially when there is so much Money involved, you should know about what you are buying. But that does Not under any circumstances relieve the banks Position in that scenario. Sory for my english, Not my mother tongue
@@matthiaszajc4594 But they don't rate them, the credit agencies do. The problem was not only IB but Credit ratings and Underwriters and local banks making these absolute garbage Mortgages.
Aldemar Aburto Aldemar Aburto yea you are Right, as i said english is Not my mothertongue, i was not sure what the proper term for these agencies were :) my main point was just referring to our boy sylvester for stating that the buyers were Not misled and that it was there fault :)
@@habibbialikafe339 thought we were talking about the Govt. This is jus a dog and pony show. In Mark Twain’s words “ we have the best govt money can buy “ 😀
Goldman Sachs: Invest in Mortgages. Customer: Yes I'll invest 1 million Goldman Sacks: I'll bet against that 1 million, so either way, If you win I win, if you lose I still win.
Victor Östlund it’s jealousy of anyone with more than them! The irony is that they think they’re fuckin Robin Hood, going after Blankfein (who grew up in public housing and made something of himself), like they’re gonna take from the rich to give to the poor...not only does that ignore how much wealth Blankfein and Goldman have created for other individuals but entire nations that have been lifted up by Wall Street investment banks. It also misconstrues the tale of Robin Hood. Robin Hood didn’t create class warfare and take from the rich villagers to give it to the villagers that didn’t work. He robbed the king (government) and the tax collector and gave the people their hard earned money back! In today’s world and when it comes to this badly edited, out of context video, what concerns me the most are the people willing to raise taxes on us all (any taxes, even if everyone says they’re on the rich only will hit the poor and hit them the hardest) and hand over unlimited power to government scumbags! Just because those politicians sit there self righteously grilling CEO’s doesn’t change the fact that it’s the government who has never created wealth, only stolen it under threat of jail and force! Fuck that!!!!!
yes, senators, a market maker both buys and sells and it is gambling, which the participants know and choose anyway...ask a better question: "are you selling products you know to be flawed in their representation?"
Not only do we allow corporations to do this, we elected trump who convinced America to do more of this and take back the laws and regulations preventing this. Oh yeah, we also gave the rich (like trump) a huge tax break from 35% to 29%, as if those corporations needed a tax break.
@@doct0rnic I love the line from "The American President" movie: "People are so thirsty for the truth they will crawl through the desert in search of it, and when they don't find it they'll drink the sand" (or something like that). That is what we have today.
Most Americans are just a few hundred dollars shy of being totally financially blown out. They've got medical debt and college debt they can't afford, kids to feed, a job they have to work overtime at to make ends meet and unresolved physical and mental health issues from a medical system that isn't built for prevention but profit. They don't "allow" corporations to do anything, they can't rise up and revolt because they can't fucking afford to. Revolt and miss work? And get my electricity shut off? Are you high? I mean look at January 6th, what a shit show that was. That was all of, what, 7000 people? Out of millions of Americans that actually believe the election was rigged (to this day, a full third of Americans believe this). If *half* of those 110 million had been there that day, a full 1 out of 2 people that honestly feel Biden stole the election had showed out, we'd be living in a different country right now. They didn't. For as hyped up and zealotus as that crowd is, they went and clocked in like regular-ass people that day. I'd love to know how many of those people stayed home because they couldn't get the day off or couldn't afford it.
Us Europeans are starting to do the same. We let them slip up over and over again. And each time their "mistakes" are growing bigger. They're testing the waters to see if people will protest. When they don't they repeat the offense.
Blankfein clearly said those two parts of the business don't know about each other. This is actually mandated by laws signed by these clowns. But who cares, he just keeps going.
They pretend to care and need a public scape-goat to direct the anger of the people away from themselves. Who is guilty of mortgage collapse you ask? Oh that is Jews.
Faceboo Idio >claims the senators are just vying for an easy scapegoat >Proceeds to blame the Jews for the financial crisis (not an unusual idea for a lot of the 20th century). Logic?
Wow Jack, you are one more link in a long chain of stupid ancestors that preceded you...I hope in the next 300 years you descendants will evolve a bit to add more brain cells to the two you already have. P.S. Your post has so much stupid, hillbilly 'wisdom' that I am truly uncertain if you could be called a homo sapiens.
This video is edited in a very manipulative way. Why don't you post the full footage where Blankfein explains that the essence of the market making business is taking the opposite sides of a bet.
Betting against your clients, whose interests you represent, is CRIMINAL FRAUD, especially when you purposely, deliberately and systematically misled them on their investments.
Robgoren there are two very separate sides of the business (private vs public). They, whether you believe it or not, are not allowed to talk to each other for the very reason you’re describing
all of this looks crazy to me . Am 25 yo living in Greece . i Just discovered that the economic collapse we had was due to Goldman Sachs AND our Goverment . Like literally a bunch of people in a period of 10 years (2000-2010) decided that 10 million people are gonna get screwed up just for their own profit . I;ve seen my father loosing his job ,my family from having a normal life goin to not even have milk in the fridge , our house getting rented because we didnt have money to do shit etc etc . Am still living in my Grandmas house , currently not being able to afford a house on my own . Prices are almost the same as America (slightly lower) while the minimum wage is 650$ . Greek goverment and its people (partly) are to blame as well . But when it comes to my generation , we the ones paying damages we didnt cause . I didnt vote for non of these disgusting politicians , nor took any black money for my own profit . By the age of 18 i was swimming in a society where even if you were a doctor you would get paid 1000$/mo . And am not a doctor . Am not trynna be negative in any way or whine about things , and i will keep on trying / working hard until am financial independent . Is just sad man , like i woke up today and my brain could not accept the fact that a bunch of CEOs were the ones that choose that the quality of life in Greece is gonna be similar to a 3rd world country just because they wanted couple of billions .
Looks like you’ve totally misinterpreted the senator’s remarks (in this particular clip). It’s as clear as day; GS was selling securities to ill-informed investors that they themselves bet against. What’s that got to do with the senator’s knowledge of market making and Chinese walls?
Yep.. and normally I'm very much for term limits, but Levin was maybe the one example I can think of where he continually did a decent job representing his constituents throughout his career. He was even the author of bills that aimed to increase transparency and reduce the number of 'gifts' congress can receive from lobbyists. The man had integrity. One of the few.
@@dzelpwr We had that in Canada with Jack Leighton, ever since he passed integrity is harder and harder to find, I wish they didn't pander and stuck by their guns. Even if I disagreed at least I could respect the integrity.
It reminds me of The Wolf of Wall Street nobody wanted to snitch until the Captain of the Ship was force to. Our government did absolutely remotely close to nothing to punish or make them suffer consequences, other than added regulations after the damage was deep in the veins of the American Tax Payer. Majority of the debt we will not pay back. Unfortunately, today it has not change at all. Right now their is a stock buble that is roughly 10 times bigger than the last bubble which was the real state buble. Mark my word all of this is just a movie scene. Federal Reserve is responsible for the entire collapse of 2008. They lowered interest rate down and eventually allow banks to borrow money and of course the IRS did absolutely nothing also and SEC plus the FBI. I know the SEC is more civil rather than criminal, but come on men.
It is prudent to hedge your exposure. The faulty underlying securities are what should have been more closely regulated. American politicians do not seem to understand what forms of insurance are, nor do they grasp the mechanics of the instruments that were backed by the assets of their own constituents.
Lol this is a perfect example of things taken out of context. Blankfein is explaining that they are market makers and have no obligation as a fiduciary and this clip just completely cuts it off. Example: Someone owns a house falling apart. A wholesaler comes by and offers a low ball deal on the house and the seller says okay whatever you take the house as is and he accepts. It’s the fault of the owner that they sold that house?
That's not what happened here at all. They were essentially unloading their losses because they knew that the underlying securities were complete junk. That's the criminal part. The criminal part is also two pronged. These were the same guys that lent houses to people that could never afford those houses. So when I buy a security that's dropping and it's related to something as stable as the housing market, you expect it to give you some yield over time. These guys knew that the system had completely fallen on its face because of their shitty practices(they're not the only ones to blame but also Bush's policies and the Fed) and they'd gorged themselves while abusing the system. Telling people that this is market making is a fkin joke. It's like they used Govt policy and leverage to their advantage and then normal people were left holding the bag and had to bail them out or else all forms of lending would've come to a halt. It's monumental abuse of power given that banks essential create money out of thin air by creating new loans.
The analogy doesn't work. They didn't just sell houses that were falling apart. They were selling houses that they were actively betting (based on their algorithms) would fall apart to a much greater extent in the future. A better analogy would be selling tickets for a concert when you have strong reason to believe that the concert is going to be canceled without the possibility for refunds, and then not telling purchasers about it. It's fraud through omission of key information.
@@johngrey1074 Yes, and what the the CEO is saying in the video is simply that GS is not responsible for selling those concert tickets to people, because GS were simply just giving people what they want (i.e., a concert ticket). But selling concert tickets while knowing that there won't be a concert is the fraudulent part.
Yeah it’s definitely normal that the people selling the house have huge bets against the value of the house (as sold) or have taken out huge bets against the whole goddamn neighborhood while also using the profits from those bets, to bet against (on a huge scale) that the house will go up in value.
@UC-8nrAlcR5ibRTNZhHol3Zg A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. What does that have to do with reducing exposure? Volatility implies more exposure.
@@user-vl5iq8mo1q the problem comes from synthetic cdos that Goldman knew were worthless but sold anyway. It’s not really illegal but it’s definitely immoral
It's normal for a financial institution to be betting against a particular instrument that its also selling as long as there's no collusion between the two different divisions to intentionally short change the buyer. Its called a Chinese wall and is quite common for organisations of this scale to simultaneously engage in two activities that could pose a conflict of interest. As long as there's a Chinese wall and appropriate measures have been put in place to prevent any conflict of interest
Aren’t they all supposed to be in the interest of the business. They sold something they knew was shit, which they have the right to do, at great cost to their reputation but doing so so that they may make the best of a bad situation and not necessarily die completely?
in this circumstance it's fraud. In the sense that they were marketing these securities as investment grade. Thats fraud. The fact that they held a short position was just the icing on the cake.
So the provide a security to their client that Goldman Sachs itself is not but those selling the securities for Goldman won't know that. I agree with this. Their not your financial adviser.
luke stu No, that's like a shop keeper selling an egg that they don't like the taste of, because a customer might. When a firm is selling a security, it is taking a commission for those marketmaking services, not for providing financial advise!
No. We woupdnt have been here if the average american citizen wasn't so damn greedy. Everyone was getting loans they couldnt afford and not even blinking twice about the payments.
Blankfiend clearly said those issuing the securities didn't know that other ppl in Goldman shorted their positions. Its just hedging their exposure - were anything bad to happen - which is did - thus, they protected themseleves. + the banks issued the CDOs they weren't the ones issuing the mortgages directly to the customers and the customers who had 0 - to little income or living beyond their means shouldn't have done so. They could have rented instead of taking a fat house and remortgaging under the wealth illusion. So one-dimensional.
Let's be honest here, for a moment, all these bank CEO s should have been jailed for the rest of their natural lives. Their companies should have been forced to refund the people defrauded. That's how you put an end to the greed. Something tells me that if those ceos went to a hard labor prison they would be totally given a new attitude.
Blankfein, in saying that his institutional clients wanted "exposure" to "the housing market" basically told Congress: "They wanted to buy a PoS, and that's precisely what we sold 'em! We were under no obligation to tell them that this was a Two-Flush'er!"
Wouldn’t selling anything imply the fact that the owner no longer wants it??? This is any idea people usually can’t wrap their head around.... the disclosure was the fact that they were selling them in the first place that is the opposite of a long position
There should have been legislation regarding CDO that you cannot buy them if you don't own the underlying asset you are protecting. Buying a CDO is like buying a fire insurance on the house of your neighbour
Back when "hedging" was never heard of..omg. I`m not siding with the sachs guys, but it hurts when a clueless politician thinks he has some moral highground, doesn`t even do his homework and comes to the wrong conclusions.
@Robgoren It's called hedging your position. They sold a product and hedged their position by betting against it. The problem here is that they hedged against a product which is, according to them, safe. These people hedged against AAA securities, that's like hedging against T-bills almost. It's like a car dealer sold you a car and tells you "this car will never break down, guaranteed" and the moment you buy it, he makes a bet that your car will break down.
@@bradcooper2059 They never told their clients that the products were safe. The credit rating agencies and the clients came to that independent conclusion based on previous data. The problem is that the past data never included any subprime mortgages because those people could not previously get credit.
At the height of the mortgage meltdown, when the big banks realised that these CDOs were complete rubbish, they started unloading these CDOs onto unsuspecting clients and going to other banks to buy swaps on the same shit that they just sold. That's not hedging. Hedging is when youre long and short at the same time. What big banks did was similar to, say a fund house dumping their stake in a company while selling calls and buying puts because they know this liquidation is gonna drive the stock price down. The only reason, why the banks took losses was because they held the contracts to some of these bonds, CDOs and swaps.
How can you bet against your own investment!!! Guess that senator never heard about hedging before, they are just trying to reduce their risk on the initial investment
I don't think you understand what hedging is, hedging is betting against your current investment ,for example if you are long on a stock , you hedge by simultaneously shorting , the long position is still MORE than the short position, you are supposed to reduce losses. in the CDOs case what they did was they fraudulently packaged toxic investments ,sold them as safe to another party, then they went to the other side and BET AGAINST IT! that is NOT hedging. that's selling crappy investment as a good one and going around and betting against it.
0:58 - Yes.... that is what shorting is. 1:40 - What a silly question. Anyone who even sells a security is--in a way--betting against it because they obviously don't think it is worth holding. 2:21 - Any investment has a certain level of risk. I can't stand these ad hominem attacks. If someone else has a really high-risk tolerance and wants to bet against the strength of a specific sector, it isn't your moral prerogative to try and gloss some illegality over top of it.
The best part of this clip is that the two democratic senators are grandstanding the most but they're ALSO the ones who would demand that the banks be prevented from denying anyone a loan. Can't have it both ways
But republicans claim to be for America but 2000-2008 China grew because republicans allowed more corporations to take businesses and productions overseas to China and other Asian regions steel and coal saw huge reductions under republicans
I don't see a problem in itself with a bank betting against one of their products. They sell CDO's for all kinds of markets. If they sell a CDO for the potato market, and they believe the potato crop will be ruined next year, of course they can bet against the potato market. That doesn't mean they have to alert all customers who wanna bet on the potato market. To me, this line of questioning was not a good way to incriminate the bankers. The real crime was their inflated ratings! (Several poorly rated loans bundled together into a CDO could somehow make that CDO get a AAA-rating) The problem is not that the stock market has become gambling rather than investment. (That's not something new. Ever since the bull/bear options were introduced, you could bet on markets rather than invest in companies) and the problem is not that banks are allowed to bet against some markets. It's that they created false ratings.
Until you find out that Abacus-2007ac1 was a CDO that was created with assets chosen such that it was expected to default which Goldman helped construct & then allowed Paulson to short
Also the fact that they knowingly gave out adjustable rate loans to people who didn’t have any income, which were 99% going to default. So it’s not only that they messed with the ratings of a bad loan, the fact that they made such loans and then betted that they would fail (which they will) that is the issue. And then the fact that they did that a million times and AIG wasn’t able to pay them back, this caused all the banks to lose a ton of money and some needed bailing, etc. And at the end, it all goes back to lack of regulation.
@@Sara-ik5po Good point. If they would simply offer a bad product which was 100% transparent and not "harmful to society" (like as if they would allow people to bet on potato prices going down despite an obvious record breaking harvest) that's one thing. But when they bet on their shitty loan policies causing people to lose homes en masse that's on a new level.
2:32 Can we get a picture of how full the bucket under the chair of Mr. Swenson was after pissing his pants? His jaw was already shaking after saying 5.5 words...
They didn't cause it (the subprime loan originators did), but they did facilitate it by taking that risk off the subprime loan originators' books, packaging it up, and selling it to pension funds. Risk cannot be created or destroyed but it can be disguised!
Really glad that these testimonies lead to sweeping policy changes and the successful prosecution of those responsible for the housing bubble. Oh wait actually, that didn't happen lol
Yes, Lloyd. The current costs per BTC mined range depending on costs of hardware and eenergy and staff costs between $7 to $11k per coin, it takes approx. It takes approx 10 minutes to mine 1 BTC. So and now make the math: Energy costs and staff costs won't increase exponential to the price per BTC. Until the next bench mark in 2025 and 2030. So then take the price predictions of 2025 of approax. $240k to $250k and the $5,25 million per BTC. And that applies for all the other coins. So now put this into perspective that in the USA Voila. There you have your profit margin. And you don't need the Fed or any central bank to print your money.
this is not entirely accurate, these investment banks just create another product that linked to the mortgage market and it is regarded as low risk because it is mortgage. to sell this products they have to hold a tonnes of mortgage loans in their books in order to put them into the MBS. Once they realized everyone is going to default on their mortgage and the mortgage loans they are holding are in fact worthless, they just quickly put them into MBS and CDO and they are rated AAA essentially risk free so people will buy them. once this products are cleared from their books, they go on the other side and short the stuff they just unload to their clients since they know they are going to zero. so yea they win both way.
Here is one of the Monsters I’ve talked about in other videos. Part of the Evil Empire. Any Jedi Knights out there that can stop him and millions like him?
Brett Sylvester There are far too many documents showing they knew it had no value and they sold it anyway. They also immediately took out shorts to cover their losses and also to cover their losses on the shorts they sold previously. There is no way you can consider this honest business.
from a technical standpoint a financial institution can have multiple branches and have some people selling a security and some others betting against that security isn't that ridiculous. Good luck proving wrong-doings from this. people keep blaming the bankers, and yes these guys are so very much greedy, but the 08 financial crisis was a failure on pretty much every component of the system. If US citizens weren't being so greedy and did not rush to apply for loans they could absolutely not afford, the crisis couldn't have happened. The fact is people are greedy, everyone is greedy, people hate the bankers because the bankers have the instrument to get the most return. If there is anyone that should go to jail, it should have been the Feds people. They were supposed to be the ones to set rules to prevent greedy people doing crazy things, they failed horribly.
I agree! If everyone acts in self interest (bankers, consumers, etc) then the ultimate blame lies with the person who gives these people the freedom to act against the best interests of the system as a whole. If you give your child an ax and he/she chops the legs off the dinner table to get at the cookie jar on top, it's your fault the table is broken!
Agreed, banks and broker dealers in these markets especially are not as simple as your local registered investment advisor saying here buy this even though it's not good for you. People love to hate the ones who make the most money..until they're offered a position there.. Even more than the fed, iD say the ratings agencies should be drilled, they could have put a stop to it all instantly
He is not taking a position. It's like you can go long or short on a stock, depending on where you think the stock will do better or not. It is the individual's responsibility to do the due diligence with their own money.
The senate was warned several times about the extreme risks that fannie mae and freddie mac were taking. They chose to ignore it, even going so far as to insult and berate the ones that were sounding the alarms. Now that the house has burned to the ground they want to point the finger at someone else. Classic politician reactions!!
Unbelievable these guys still Billions and millions of people broke and nothing happen to them !! A poor person still a bag of cookies and they get a felony plus 5 years in Jail Make no sense
McCaskill nailed it, we don't really need these instruments. Goldman Sachs, JPM and others need these to collect their commission and that's it. They couldn't care less about the quality of their CDOs
That's not accurate. Companies' results are compared on the basis of the economic situation during their term. If a hedge fund makes a 7% return but the S&P had a 10% increase, the fund performed below average.
To this day we should have let them all fail , and they should have had to use their own money and people should have been held accountable. Instead you bailed them out, alot of them have themselves more bonuses and to what for them already doing the same thing again
Supposing no bailout. Let the whole rotten edifice crumble to the ground. Would those who lost homes and pensions, and all the attendant misery, have been any worse off? The misery would have spread further, but perhaps it might have put a needed dent in the self-justified, smug behaviour of a few sharks. Maybe. Using bailout money to pay themselves bonuses just highlights the psychopathy of narcissism at work in those circles, and that makes them little better than common criminals, albiet well-dressed ones.
Goldman sold mortgage bonds to investors, knowing full well they were rated inaccurately on purpose by the rating agencies. Then behind the scenes, Goldman went to AIG and bought Credit Default Swaps and shorted the very mortgage bonds that they claimed were AAA rated. It's mind boggling how no one went to prison for fraud
Do you purchase car insurance knowing that you're going to crash your cad?
@@Built2kill you dont buy insurance for you crashing. you buy insurance to protect yourself from other drivers
@@Built2kill I found mr. Sparks
@@Built2kill Do you get paid to spew out BS?
@@Built2kill If you buy fire insurance on your home and don't disclose that you know you have a gas leak and a methlab in the basement, guess what, that's illegal. That's fraud. And in 99.9% of cases, you won't get the money anyways when your house eventually does burn down. And not only did these banks get the money from the investors (the "insurance company" in this case), they ALSO got reimbursed for the full cost of the house by the fucking TAX PAYERS. They got paid that money to rebuild the house and instead they pissed on the ashes and bought cocaine and strippers with it like they fucking always do.
It will happen all over again. No one has learned any lesson from this
Pardeep singh well said, when the federal gov baila you out, no one cares about learning. Thousands will get screwed over again
Of course it will one way or another.
Bad news, it's happened again
Not true, it didn't happen again either. This Covid collapse is far more natural and the way things should be.
Nah things like CDO^2 not making a comeback so far
I love how gambling is illegal in some states, but this is legal.
That would be basically every state. It’s illegal to have a poker game at your house with your buddies, if you’re playing for money. But you can easily load up Robinhood and borrow money instantly from them on margin and make insanely risky bets with your entire life savings in about 25 minutes time, and lose everything before the end of the trading day.
@@5urg3x I think you bring up a great point with how they chose to have laws on the book they dont enforce, but will enforce when they want to. If they unlawfully entered someones home who happend to be playing poker and they wanted to trump up charges, they would definately included illegal gmbling in the charges.
No executives got hurt by this. They got bonuses while Americans got their homes taken.
The state should not decide what people use their own money on.
it's because it's too complicated for the peasants, so they dont bother.
GS was describing the game as it was, but the people who made the bets and lost money did not want to own up the responsibility. The public who was hurt were eager to see heads rolling. GS was unscratched and left standing after the crisis hence the perfect scapegoat. Sensing a great opportunity to be popular with voters, politicians of all colours jumped at the bankers trying to be seen doing something for the average joe, who had no idea who was at fault or had any inclination to learn the details while their tax money is being channelled to the bankers by the politicians. Their systems are so full of conflicts, the bankers, the rating agency, the regulators and politicians. The whole thing has always been a circus and always will be.
Yes they provided a security for the housing market, but that is not the issue, the ISSUE is that they made it seem like a good security, but in reality it was GARBAGE. They committed fraud plain and simple.
Finally a comment that makes sense... people here are deffending G&S forgetting that they payed S&P to hold the ratings on CDO's while dumping them...
phatkaveh60 somebody finally gets it, this is a crime and the people responsible for it should be held accountable
Brett Sylvester well you are Right about the Securities, But they did advertise their product wrong ( in this case the advertised them with a tripple A Rating when in fact They were utter shit ( which was just possible because of the bribing of the finincial service authorities )). It definitey was a fraud. But i do as well agree with you that you should know about the product you buy, especially when there is so much Money involved, you should know about what you are buying. But that does Not under any circumstances relieve the banks Position in that scenario. Sory for my english, Not my mother tongue
@@matthiaszajc4594 But they don't rate them, the credit agencies do. The problem was not only IB but Credit ratings and Underwriters and local banks making these absolute garbage Mortgages.
Aldemar Aburto Aldemar Aburto yea you are Right, as i said english is Not my mothertongue, i was not sure what the proper term for these agencies were :) my main point was just referring to our boy sylvester for stating that the buyers were Not misled and that it was there fault :)
It's only wrong if you get caught doing it. If you get "Discovered" later, it was just a mistake.
Nice how they cut away, when he starts to explain...
Goldman Sachs owns The Government
@@tigran1993 then why did the gov come after them and ruin their reputation??
@@habibbialikafe339 ruined whose reputation!? The guy in the govt was Goldman Sachs himself who created these securities!
@@missbond7345 he wasnt part of congress. we talking about congress here
@@habibbialikafe339 thought we were talking about the Govt. This is jus a dog and pony show. In Mark Twain’s words “ we have the best govt money can buy “ 😀
Goldman Sachs: Invest in Mortgages.
Customer: Yes I'll invest 1 million
Goldman Sacks: I'll bet against that 1 million, so either way, If you win I win, if you lose I still win.
Except a) those divisions are separated and b) they weren't engaging in a risk with their consultancy.
@@maxmustermann8558 People just like having someone to hate on
KN Byam it’s called a hedge fund.
Victor Östlund it’s jealousy of anyone with more than them! The irony is that they think they’re fuckin Robin Hood, going after Blankfein (who grew up in public housing and made something of himself), like they’re gonna take from the rich to give to the poor...not only does that ignore how much wealth Blankfein and Goldman have created for other individuals but entire nations that have been lifted up by Wall Street investment banks. It also misconstrues the tale of Robin Hood. Robin Hood didn’t create class warfare and take from the rich villagers to give it to the villagers that didn’t work. He robbed the king (government) and the tax collector and gave the people their hard earned money back! In today’s world and when it comes to this badly edited, out of context video, what concerns me the most are the people willing to raise taxes on us all (any taxes, even if everyone says they’re on the rich only will hit the poor and hit them the hardest) and hand over unlimited power to government scumbags! Just because those politicians sit there self righteously grilling CEO’s doesn’t change the fact that it’s the government who has never created wealth, only stolen it under threat of jail and force! Fuck that!!!!!
@@logicalconceptofficial I agree with you bro
yes, senators, a market maker both buys and sells and it is gambling, which the participants know and choose anyway...ask a better question: "are you selling products you know to be flawed in their representation?"
They asked that, watch the full testimony
It amazes me how Americans let corporations operate the way they do.
Not only do we allow corporations to do this, we elected trump who convinced America to do more of this and take back the laws and regulations preventing this. Oh yeah, we also gave the rich (like trump) a huge tax break from 35% to 29%, as if those corporations needed a tax break.
@@rabbit251still outrageous that people want him back too,
@@doct0rnic I love the line from "The American President" movie: "People are so thirsty for the truth they will crawl through the desert in search of it, and when they don't find it they'll drink the sand" (or something like that). That is what we have today.
Most Americans are just a few hundred dollars shy of being totally financially blown out. They've got medical debt and college debt they can't afford, kids to feed, a job they have to work overtime at to make ends meet and unresolved physical and mental health issues from a medical system that isn't built for prevention but profit. They don't "allow" corporations to do anything, they can't rise up and revolt because they can't fucking afford to. Revolt and miss work? And get my electricity shut off? Are you high?
I mean look at January 6th, what a shit show that was. That was all of, what, 7000 people? Out of millions of Americans that actually believe the election was rigged (to this day, a full third of Americans believe this). If *half* of those 110 million had been there that day, a full 1 out of 2 people that honestly feel Biden stole the election had showed out, we'd be living in a different country right now. They didn't. For as hyped up and zealotus as that crowd is, they went and clocked in like regular-ass people that day. I'd love to know how many of those people stayed home because they couldn't get the day off or couldn't afford it.
Us Europeans are starting to do the same. We let them slip up over and over again. And each time their "mistakes" are growing bigger.
They're testing the waters to see if people will protest. When they don't they repeat the offense.
Blankfein clearly said those two parts of the business don't know about each other. This is actually mandated by laws signed by these clowns. But who cares, he just keeps going.
How many times does the investment bank's equity research house put a BUY rec on a company that approached the investment bank to raise capital?
Why do senators talk as if they know these things
Ahnaf Ahmad You don't need to be Economist to understand these shitty deals & credit default swap purchased by these banks on their own product!
They pretend to care and need a public scape-goat to direct the anger of the people away from themselves. Who is guilty of mortgage collapse you ask? Oh that is Jews.
Faceboo Idio >claims the senators are just vying for an easy scapegoat
>Proceeds to blame the Jews for the financial crisis (not an unusual idea for a lot of the 20th century).
Logic?
Wow Jack, you are one more link in a long chain of stupid ancestors that preceded you...I hope in the next 300 years you descendants will evolve a bit to add more brain cells to the two you already have.
P.S. Your post has so much stupid, hillbilly 'wisdom' that I am truly uncertain if you could be called a homo sapiens.
You don't have to be that smart to know this, you aren't a genius calm down.
This video is edited in a very manipulative way. Why don't you post the full footage where Blankfein explains that the essence of the market making business is taking the opposite sides of a bet.
Mihail ILIEV, Amen!
Betting against your clients, whose interests you represent, is CRIMINAL FRAUD, especially when you purposely, deliberately and systematically misled them on their investments.
Robgoren there are two very separate sides of the business (private vs public). They, whether you believe it or not, are not allowed to talk to each other for the very reason you’re describing
luvdriven540i no it’s not because they are not fiduciaries in the market making context, this is why no one went to jail
@@robgoren8628 Here's an example of the GS approach to selling securities: "Looks Good on You!" ruclips.net/video/phagxOal7_A/видео.html
all of this looks crazy to me . Am 25 yo living in Greece . i Just discovered that the economic collapse we had was due to Goldman Sachs AND our Goverment . Like literally a bunch of people in a period of 10 years (2000-2010) decided that 10 million people are gonna get screwed up just for their own profit . I;ve seen my father loosing his job ,my family from having a normal life goin to not even have milk in the fridge , our house getting rented because we didnt have money to do shit etc etc . Am still living in my Grandmas house , currently not being able to afford a house on my own . Prices are almost the same as America (slightly lower) while the minimum wage is 650$ . Greek goverment and its people (partly) are to blame as well . But when it comes to my generation , we the ones paying damages we didnt cause . I didnt vote for non of these disgusting politicians , nor took any black money for my own profit . By the age of 18 i was swimming in a society where even if you were a doctor you would get paid 1000$/mo . And am not a doctor . Am not trynna be negative in any way or whine about things , and i will keep on trying / working hard until am financial independent . Is just sad man , like i woke up today and my brain could not accept the fact that a bunch of CEOs were the ones that choose that the quality of life in Greece is gonna be similar to a 3rd world country just because they wanted couple of billions .
Imagine being a senator in this hearing and not understanding how market making or Chinese walls work.
And it’s these idiots who are trying to “regulate” our markets.
Imagine being a Senator.
Looks like you’ve totally misinterpreted the senator’s remarks (in this particular clip). It’s as clear as day; GS was selling securities to ill-informed investors that they themselves bet against. What’s that got to do with the senator’s knowledge of market making and Chinese walls?
@@NomadLovesUs you are likely as knowledge as the senator
@@Ologramma96 you are likely as knowledgeable as a smug investor calibrated to a stupid fucking system of imaginary money. Fuck ya'll lmao
R.I.P Carl Levin the longest serving senator in the U.S.
Yep.. and normally I'm very much for term limits, but Levin was maybe the one example I can think of where he continually did a decent job representing his constituents throughout his career. He was even the author of bills that aimed to increase transparency and reduce the number of 'gifts' congress can receive from lobbyists.
The man had integrity. One of the few.
@@dzelpwr We had that in Canada with Jack Leighton, ever since he passed integrity is harder and harder to find, I wish they didn't pander and stuck by their guns. Even if I disagreed at least I could respect the integrity.
it's impossible that they are not in prison...unbelievable
Google these guys, Sparks is running a hedge fund, and Swenson still at Goldman.
Why would government imprison their partners?
They have broke no law . So why would they in prison ?
Usury should be banned and all userers thrown in jail.
And none served time behind bars
It reminds me of The Wolf of Wall Street nobody wanted to snitch until the Captain of the Ship was force to. Our government did absolutely remotely close to nothing to punish or make them suffer consequences, other than added regulations after the damage was deep in the veins of the American Tax Payer. Majority of the debt we will not pay back. Unfortunately, today it has not change at all. Right now their is a stock buble that is roughly 10 times bigger than the last bubble which was the real state buble. Mark my word all of this is just a movie scene. Federal Reserve is responsible for the entire collapse of 2008. They lowered interest rate down and eventually allow banks to borrow money and of course the IRS did absolutely nothing also and SEC plus the FBI. I know the SEC is more civil rather than criminal, but come on men.
It is prudent to hedge your exposure. The faulty underlying securities are what should have been more closely regulated. American politicians do not seem to understand what forms of insurance are, nor do they grasp the mechanics of the instruments that were backed by the assets of their own constituents.
Congress is made up of the WORST crooks of all.
Lol this is a perfect example of things taken out of context. Blankfein is explaining that they are market makers and have no obligation as a fiduciary and this clip just completely cuts it off. Example: Someone owns a house falling apart. A wholesaler comes by and offers a low ball deal on the house and the seller says okay whatever you take the house as is and he accepts. It’s the fault of the owner that they sold that house?
sadly this will go over everyone's heads
That's not what happened here at all. They were essentially unloading their losses because they knew that the underlying securities were complete junk. That's the criminal part. The criminal part is also two pronged. These were the same guys that lent houses to people that could never afford those houses. So when I buy a security that's dropping and it's related to something as stable as the housing market, you expect it to give you some yield over time. These guys knew that the system had completely fallen on its face because of their shitty practices(they're not the only ones to blame but also Bush's policies and the Fed) and they'd gorged themselves while abusing the system. Telling people that this is market making is a fkin joke. It's like they used Govt policy and leverage to their advantage and then normal people were left holding the bag and had to bail them out or else all forms of lending would've come to a halt. It's monumental abuse of power given that banks essential create money out of thin air by creating new loans.
The analogy doesn't work. They didn't just sell houses that were falling apart. They were selling houses that they were actively betting (based on their algorithms) would fall apart to a much greater extent in the future. A better analogy would be selling tickets for a concert when you have strong reason to believe that the concert is going to be canceled without the possibility for refunds, and then not telling purchasers about it. It's fraud through omission of key information.
@@johngrey1074 Yes, and what the the CEO is saying in the video is simply that GS is not responsible for selling those concert tickets to people, because GS were simply just giving people what they want (i.e., a concert ticket). But selling concert tickets while knowing that there won't be a concert is the fraudulent part.
Yeah it’s definitely normal that the people selling the house have huge bets against the value of the house (as sold) or have taken out huge bets against the whole goddamn neighborhood while also using the profits from those bets, to bet against (on a huge scale) that the house will go up in value.
It's called hedging. Betting against a security you sell is very sensible in practice.
@UC-8nrAlcR5ibRTNZhHol3Zg A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. What does that have to do with reducing exposure? Volatility implies more exposure.
@@user-vl5iq8mo1q the problem comes from synthetic cdos that Goldman knew were worthless but sold anyway. It’s not really illegal but it’s definitely immoral
Keep investing in something you know nothing about. It IS gambling.
It's normal for a financial institution to be betting against a particular instrument that its also selling as long as there's no collusion between the two different divisions to intentionally short change the buyer. Its called a Chinese wall and is quite common for organisations of this scale to simultaneously engage in two activities that could pose a conflict of interest. As long as there's a Chinese wall and appropriate measures have been put in place to prevent any conflict of interest
Aren’t they all supposed to be in the interest of the business. They sold something they knew was shit, which they have the right to do, at great cost to their reputation but doing so so that they may make the best of a bad situation and not necessarily die completely?
@@tcskips Think of it as if it was a law firm who has clients from two parties from a multi-party case.
The fact that it's normal is a huge issue.
in this circumstance it's fraud. In the sense that they were marketing these securities as investment grade. Thats fraud. The fact that they held a short position was just the icing on the cake.
He should've been locked up but instead he bribed his way out it.
So the provide a security to their client that Goldman Sachs itself is not but those selling the securities for Goldman won't know that. I agree with this. Their not your financial adviser.
I agree
But they knew which way it's going.. ethics?
Senator Levin can't make the distinction between a broker and a wealth advisor
luke stu there was no regulation against it.
luke stu No, that's like a shop keeper selling an egg that they don't like the taste of, because a customer might. When a firm is selling a security, it is taking a commission for those marketmaking services, not for providing financial advise!
This man will spend more money than *you* will ever see.
Why is this clip cut at 1:43? It was jsut about to get good
I love how nobody important actually got punished for this fucking clown game. Keep it in mind.
We wouldn't of had this happen...if people were just honest :/ I mean for real. How hard is it to be a decent honest upstanding citizen?
No. We woupdnt have been here if the average american citizen wasn't so damn greedy. Everyone was getting loans they couldnt afford and not even blinking twice about the payments.
@@Built2kill That's definitely a problem too....
Next to impossible when money is involved
SCROLL BACK UP
... these hearings were nothing more than a dog and pony show the outcome of which was determined days before behind closed doors ............
Exactly, nothing actually came out of this, all a big show.
Politicians trying to shame ANYONE is laughable
Blankfiend clearly said those issuing the securities didn't know that other ppl in Goldman shorted their positions.
Its just hedging their exposure - were anything bad to happen - which is did - thus, they protected themseleves.
+ the banks issued the CDOs they weren't the ones issuing the mortgages directly to the customers and the customers who had 0 - to little income or living beyond their means shouldn't have done so. They could have rented instead of taking a fat house and remortgaging under the wealth illusion.
So one-dimensional.
Weren't those the people the loans were being advertised to though?
How come we never get to reverse the seats and ask how these politicians became millionaires?
You know that face a child makes, when they get caught but they're only sorry because they got caught? Yeah, that.
Let's be honest here, for a moment, all these bank CEO s should have been jailed for the rest of their natural lives. Their companies should have been forced to refund the people defrauded. That's how you put an end to the greed. Something tells me that if those ceos went to a hard labor prison they would be totally given a new attitude.
In that case you deserve to be in jail too. People are just as greedy, they just don't operate on such a large scale.
As I said I want to distance myself from Goldman Sachs , Blackrock, Blackstone - bc it’s going down
Blankfein, in saying that his institutional clients wanted "exposure" to "the housing market" basically told Congress: "They wanted to buy a PoS, and that's precisely what we sold 'em! We were under no obligation to tell them that this was a Two-Flush'er!"
completely wrong, the clients asked for safe AAA investment, but what they got was junk investment packaged as AAA, tl;dr it was deception
It’s the same as selling a Lemon Car. If you’re selling a Lemon, you must disclose it!
A bunch of crooks!! What a disgrace!
Wouldn’t selling anything imply the fact that the owner no longer wants it??? This is any idea people usually can’t wrap their head around.... the disclosure was the fact that they were selling them in the first place that is the opposite of a long position
There should have been legislation regarding CDO that you cannot buy them if you don't own the underlying asset you are protecting.
Buying a CDO is like buying a fire insurance on the house of your neighbour
Nobody is pointing out that this is called hedging. Common practice in investment banking.
I don’t think we did anything wrong. I mean hey, look at how much money we made selling junk!
I think people forget that business is business and it’s not a sympathetic world. That’s reality and that’s how businessmen/women become rich.
Back when "hedging" was never heard of..omg. I`m not siding with the sachs guys, but it hurts when a clueless politician thinks he has some moral highground, doesn`t even do his homework and comes to the wrong conclusions.
@Robgoren It's called hedging your position. They sold a product and hedged their position by betting against it. The problem here is that they hedged against a product which is, according to them, safe. These people hedged against AAA securities, that's like hedging against T-bills almost. It's like a car dealer sold you a car and tells you "this car will never break down, guaranteed" and the moment you buy it, he makes a bet that your car will break down.
@@bradcooper2059 They never told their clients that the products were safe. The credit rating agencies and the clients came to that independent conclusion based on previous data. The problem is that the past data never included any subprime mortgages because those people could not previously get credit.
@@RobertSmurda they knew what they were selling and knew why they shorted it
At the height of the mortgage meltdown, when the big banks realised that these CDOs were complete rubbish, they started unloading these CDOs onto unsuspecting clients and going to other banks to buy swaps on the same shit that they just sold. That's not hedging. Hedging is when youre long and short at the same time. What big banks did was similar to, say a fund house dumping their stake in a company while selling calls and buying puts because they know this liquidation is gonna drive the stock price down. The only reason, why the banks took losses was because they held the contracts to some of these bonds, CDOs and swaps.
How can you bet against your own investment!!! Guess that senator never heard about hedging before, they are just trying to reduce their risk on the initial investment
I don't think you understand what hedging is, hedging is betting against your current investment ,for example if you are long on a stock , you hedge by simultaneously shorting , the long position is still MORE than the short position, you are supposed to reduce losses. in the CDOs case what they did was they fraudulently packaged toxic investments ,sold them as safe to another party, then they went to the other side and BET AGAINST IT! that is NOT hedging. that's selling crappy investment as a good one and going around and betting against it.
0:58 - Yes.... that is what shorting is.
1:40 - What a silly question. Anyone who even sells a security is--in a way--betting against it because they obviously don't think it is worth holding.
2:21 - Any investment has a certain level of risk. I can't stand these ad hominem attacks. If someone else has a really high-risk tolerance and wants to bet against the strength of a specific sector, it isn't your moral prerogative to try and gloss some illegality over top of it.
It's risk transfer ma'am, God's work.
The best part of this clip is that the two democratic senators are grandstanding the most but they're ALSO the ones who would demand that the banks be prevented from denying anyone a loan. Can't have it both ways
But republicans claim to be for America but 2000-2008 China grew because republicans allowed more corporations to take businesses and productions overseas to China and other Asian regions steel and coal saw huge reductions under republicans
He's a lying S.O.B., they took both sides of the deal and could not lose.
No one went to jail. Our world is so upside down.
Not one of these people went to jail
I don't see a problem in itself with a bank betting against one of their products. They sell CDO's for all kinds of markets. If they sell a CDO for the potato market, and they believe the potato crop will be ruined next year, of course they can bet against the potato market. That doesn't mean they have to alert all customers who wanna bet on the potato market.
To me, this line of questioning was not a good way to incriminate the bankers.
The real crime was their inflated ratings! (Several poorly rated loans bundled together into a CDO could somehow make that CDO get a AAA-rating)
The problem is not that the stock market has become gambling rather than investment. (That's not something new. Ever since the bull/bear options were introduced, you could bet on markets rather than invest in companies) and the problem is not that banks are allowed to bet against some markets.
It's that they created false ratings.
Until you find out that Abacus-2007ac1 was a CDO that was created with assets chosen such that it was expected to default which Goldman helped construct & then allowed Paulson to short
@@yourname1869 True! The obscured packaging is a big issue, which makes it less transparent how insane the bets have become.
Also the fact that they knowingly gave out adjustable rate loans to people who didn’t have any income, which were 99% going to default. So it’s not only that they messed with the ratings of a bad loan, the fact that they made such loans and then betted that they would fail (which they will) that is the issue. And then the fact that they did that a million times and AIG wasn’t able to pay them back, this caused all the banks to lose a ton of money and some needed bailing, etc. And at the end, it all goes back to lack of regulation.
@@Sara-ik5po Good point.
If they would simply offer a bad product which was 100% transparent and not "harmful to society" (like as if they would allow people to bet on potato prices going down despite an obvious record breaking harvest) that's one thing. But when they bet on their shitty loan policies causing people to lose homes en masse that's on a new level.
2:32 Can we get a picture of how full the bucket under the chair of Mr. Swenson was after pissing his pants?
His jaw was already shaking after saying 5.5 words...
Looked like somebody who was told about how risky this was, but didn’t think it would ever go wrong lol
Those are the looks of a heated exchange 😮
They didn't cause it (the subprime loan originators did), but they did facilitate it by taking that risk off the subprime loan originators' books, packaging it up, and selling it to pension funds. Risk cannot be created or destroyed but it can be disguised!
Blankfein is real tight with the mob.
The epitome of criminal
Really glad that these testimonies lead to sweeping policy changes and the successful prosecution of those responsible for the housing bubble. Oh wait actually, that didn't happen lol
You pretend to be sorry and ill pretend to be mad
No one went to jail
Yes, Lloyd. The current costs per BTC mined range depending on costs of hardware and eenergy and staff costs between $7 to $11k per coin, it takes approx. It takes approx 10 minutes to mine 1 BTC. So and now make the math: Energy costs and staff costs won't increase exponential to the price per BTC. Until the next bench mark in 2025 and 2030. So then take the price predictions of 2025 of approax. $240k to $250k and the $5,25 million per BTC. And that applies for all the other coins. So now put this into perspective that in the USA Voila. There you have your profit margin. And you don't need the Fed or any central bank to print your money.
And only 1 person was ever convicted!!! God knows what's going to happen in the next GFC!?
this is not entirely accurate, these investment banks just create another product that linked to the mortgage market and it is regarded as low risk because it is mortgage. to sell this products they have to hold a tonnes of mortgage loans in their books in order to put them into the MBS. Once they realized everyone is going to default on their mortgage and the mortgage loans they are holding are in fact worthless, they just quickly put them into MBS and CDO and they are rated AAA essentially risk free so people will buy them. once this products are cleared from their books, they go on the other side and short the stuff they just unload to their clients since they know they are going to zero. so yea they win both way.
Here is one of the Monsters I’ve talked about in other videos. Part of the Evil Empire.
Any Jedi Knights out there that can stop him and millions like him?
They are true criminals murderers and plunderers on this planet. But they never goes to jail...
throw all these crooked ceos in prison and drain their bank account and give back to taxpayers
Seeing this now and knowing they got away with it and made billions and they are still in charge. Yikes 2020.
Brett Sylvester yeah that’s why they held the prices till they sold it then devalued it
Brett Sylvester There are far too many documents showing they knew it had no value and they sold it anyway. They also immediately took out shorts to cover their losses and also to cover their losses on the shorts they sold previously. There is no way you can consider this honest business.
So no one is going to point out how big those files are
Regulation without enforcement isn’t regulation at all
nice show where is my popcorn
Regardless of whether you don't like these practices, this did not cause the financial crisis and you should focus on more important things.
from a technical standpoint a financial institution can have multiple branches and have some people selling a security and some others betting against that security isn't that ridiculous. Good luck proving wrong-doings from this.
people keep blaming the bankers, and yes these guys are so very much greedy, but the 08 financial crisis was a failure on pretty much every component of the system. If US citizens weren't being so greedy and did not rush to apply for loans they could absolutely not afford, the crisis couldn't have happened. The fact is people are greedy, everyone is greedy, people hate the bankers because the bankers have the instrument to get the most return. If there is anyone that should go to jail, it should have been the Feds people. They were supposed to be the ones to set rules to prevent greedy people doing crazy things, they failed horribly.
I agree! If everyone acts in self interest (bankers, consumers, etc) then the ultimate blame lies with the person who gives these people the freedom to act against the best interests of the system as a whole. If you give your child an ax and he/she chops the legs off the dinner table to get at the cookie jar on top, it's your fault the table is broken!
Agreed, banks and broker dealers in these markets especially are not as simple as your local registered investment advisor saying here buy this even though it's not good for you. People love to hate the ones who make the most money..until they're offered a position there..
Even more than the fed, iD say the ratings agencies should be drilled, they could have put a stop to it all instantly
He is not taking a position. It's like you can go long or short on a stock, depending on where you think the stock will do better or not. It is the individual's responsibility to do the due diligence with their own money.
The senate was warned several times about the extreme risks that fannie mae and freddie mac were taking. They chose to ignore it, even going
so far as to insult and berate the ones that were sounding the alarms. Now that the house has burned to the ground they want to point the finger
at someone else. Classic politician reactions!!
Those options are an insurance product. This senator needs some education.
Is the bankers responsibility to tell the customer the quality of the securities?
Bunch of corrupt individuals and the business they work for also corrupt
Everybody better get ready for part 2 of this it's coming soon
Unbelievable these guys still Billions and millions of people broke and nothing happen to them !!
A poor person still a bag of cookies and they get a felony plus 5 years in Jail
Make no sense
McCaskill nailed it, we don't really need these instruments. Goldman Sachs, JPM and others need these to collect their commission and that's it. They couldn't care less about the quality of their CDOs
Easy economics in trial : when you make tons of money it's because you are good. When you loose a ton it's all market fault.
That's not accurate. Companies' results are compared on the basis of the economic situation during their term. If a hedge fund makes a 7% return but the S&P had a 10% increase, the fund performed below average.
What are these people crying about? Speculation IS gambling. That’s what’s given you the freedoms you love so much!
To this day we should have let them all fail , and they should have had to use their own money and people should have been held accountable. Instead you bailed them out, alot of them have themselves more bonuses and to what for them already doing the same thing again
Yadda,yadda,yadda if politicians don't like it DO SOMETHING ABOUT IT!!!!!!!
Tom Smith agree they try to scold these people then do nothing proactive about it
Money is what I want. Forget ethics
Millions lost homes!
0:54 the very act of selling is betting against...
@@scoobydoo3322 It's called hedging. It happens still. Learn the financial markets before opening trap.
Supposing no bailout. Let the whole rotten edifice crumble to the ground. Would those who lost homes and pensions, and all the attendant misery, have been any worse off? The misery would have spread further, but perhaps it might have put a needed dent in the self-justified, smug behaviour of a few sharks. Maybe. Using bailout money to pay themselves bonuses just highlights the psychopathy of narcissism at work in those circles, and that makes them little better than common criminals, albiet well-dressed ones.
Thank god this time is over, and things got better and stronger, onward...
That Mcascal woman is so harsh on the ears naginaginagi....
The senator is the most senator-looking senator
We investigated ourselves and found no wrongdoing
If Goldman Sachs tells you to sell-buy. If Goldman Sachs tells you to buy-sell.
Back when AP seemed like a real journalistic entity..
If you only you knew which side these firms investors vote for
Here comes your money aaaaand... It's gone.
That’s why you’d sell something, stop pretending to care