Ex-Aurora mortgage fraud expert sues for wrongful termination. He was supposed to look for fraud but not find it. The story is here.
McClatchy turned up some interesting Goldman Sachs documents:
Full article here.
“The documents include the offering circulars for 40 of Goldman’s estimated 148 deals in the Cayman Islands over a seven-year period, including a dozen of its more exotic transactions tied to mortgages and consumer loans that it marketed in 2006 and 2007, at the crest of the booming market for subprime mortgages to marginally qualified borrowers.
In some of these transactions, investors not only bought shaky securities backed by residential mortgages, but also took on the role of insurers by agreeing to pay Goldman and others massive sums if risky home loans nose-dived in value — as Goldman was effectively betting they would.”
Naked Capitalism blogs on the above story here.
Hasn’t Neil Garfield been talking about these “destined to fail” loans and the incentives creating these Frankenstein babies forever? Glad some news organizations are catching up.