Goldman Sachs Goes Nixonian On Subprime

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Goldman has been positioning itself as one of the good guys on subprime mortgages. Or bad guys, if you were an investor in New Century. Along with Citigroup, it reportedly helped cut off credit to the troubled subprime lender while Morgan Stanley sought to extend even further credit. This is being reported as an example of Goldman being more responsible than some of its Wall Street competitors. And Goldman likes to present itself as responsible--that's what those hybrid cars are all about. But there's no getting around the fact that Goldman was one of the top institutional investors in New Century.
So how is Goldman explaining the subprime "meltdown?" (That's now the official word for what's happening.)
"Loans were made that should have not been made by companies making them that shouldn't have been making them," Goldman's chief financial officer just said in a conference call.
Echoing the Nixon administration's "mistakes were made" passive voice seems a particularly bad way to reassure the markets and Goldman investors about subprime exposure.

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