News / USA

Goldman Sachs Execs Lauded Profits From Housing Market Collapse

TEXT SIZE - +

E-mails released Saturday show executives of the U.S. investment bank Goldman Sachs boasting about making money by betting against risky subprime mortgages as the U.S. housing market was collapsing in 2007.

In one of the e-mails, which were released by a U.S. Senate committee, Goldman Sachs Chief Executive Lloyd Blankfein said the company lost money on the mortgages - but made more than it lost by taking a so-called short position on the mortgages.

Short positions are bets the market will go down.

The emails were released as Blankfein and other Goldman Sachs executives prepare to testify on Tuesday before a Senate committee investigating the origins of the financial crisis.

Goldman Sachs said Saturday the Senate committee unfairly released only four emails from almost 20 million pages of documents provided by the company.

Earlier this month, U.S. financial regulators filed suit against Goldman Sachs, accusing the company of assembling a package of mortgage investments intended to fail, and selling the security to investors without warning them of the dangers.

Goldman Sachs has vigorously denied any wrongdoing and has vowed to defend its reputation.

Some information for this report provided by AP, AFP and Reuters.

You May Like

Russia Cracks Down on Gay Activism

Arrest of 30 activists coincided with first-ever gay rights rally in neighboring Ukraine, which was allowed by authorities, protected by police More

In Hong Kong, Beef Over Sammy Kitchen's 3D Cow

Much to the dismay of restaurant owner Sammy Yip, authorities have turned an inhospitable eye toward his giant cow looming over Queen's Road West More

Cambodian Documentary Wins Cannes Prize for Innovative Cinema

In 'The Missing Picture', Rithy Panh uses clay figurines to tell story of Khmer Rouge brutality More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Video

Video Volunteers Help Revive LA's Concrete River

The Los Angeles River is a concrete drainage channel through much of its 80-kilometer length. It channels waste-water from storm drains and has become a receptacle for much of the city's trash. But as Mike O'Sullivan reports, the river is slowly being restored with the help of volunteers, who take part in an annual clean-up.