Goldman acknowledges that the marketing materials for the ABACUS 2007-ACI transaction contained incomplete information. In particular, it was a mistake for the Goldman marketing materials to state that the reference portfolio was "selected by" ACA Management LLC without disclosing the role of Paulson & Co. Inc. in the portfolio selection process and that Paulson's economic interests were adverse to CDO investors. Goldman regrets that the marketing materials did not contain that disclosure.P.S. Goldman earned $12 billion in just profit in 2009, and made $3.5 billion just in Q1 alone. They're kinda sorry all the way to the f'ckin bank. It's about 3-4% of what they paid out just in bonuses to employees in 2009. That's the penalty Goldman has to pay. That's asswipe money for them. They made multiple times that in just profit, not to mention bonuses to the people who engineered the whole fix...and they have the capital to keep playing the Big Casino even more.
Michale Douglas playing Gordon Gekko in "Wall Street" was wrong when he said "Greed is good." That's a moral judgment, and there's no morality involved here. He should have just stopped at "Greed is." It's an economic tautology, an inevitability, in 2010. The lesson here is if you game the system with enough leverage to the point that the system breaks down for everyone involved if you should lose, everyone then has an invested interest in making sure you win. You can't lose the game if you are the game.
Meanwhile, how you doin'?
Me? Been a long day. Oil geyser is capped (for now), FinReg passed, Goldman Sachs settled with the SEC. Somehow, I do see ordinary Americans getting some benefit from all this, but not compared to the pain we're going to go through to pay for all this.
And we will be paying for all this for a very, very long time.