Goldman Sachs and fraud allegations
Professor Stefano Harney reacts to news that Wall Street banking giant Goldman Sachs is accused of de-frauding investors:
"This indictment proves that investment banks were involved not only in socially useless activities but socially harmful activities, creating investment CDO's designed to fail, to implode. Is this what the Chairman of Goldman Sachs means by 'doing God's work?'
"These collateral debt obligations were built to fail and then marketed as if they were merely risky. This was typical of the socially useless, and social harmful, activities at the heart of the shadow banking system.'
"This indictment ought to lead to regulation insisting that all trading in derivatives take place over the counter, in a legitimate market, for all to see. Unfortunately so far in the UK, this reform is itself not yet on the counter."
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