The Daily Beast "SEC claims that Goldman sold a complex type of mortgage bond, known as a collateralized debt obligation, to investors without alerting them that hedge-fund manager John Paulson had selected the same bonds as likely to default.
Paulson made money because he was actually shorting the bonds (a trade that becomes profitable when prices decline), as Goldman was selling the bonds to investors, suggesting they buy them because the housing market would continue to boom." They were jerks, so now watch the demagogues in Washington attack the entire investment industry.
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