Goldman Gets Caught
The civil and criminal charges have started on Wall Street. I’ve mentioned in a couple of recent articles that financials are riskier than they appear and here’s another reason why.
I’m sure you’ve already seen the details of the suit by the SEC against Goldman Sachs but the bottom line is this… Wall Street is intertwined in shady relationships on almost every product it sells. You can be guaranteed you don’t know everything about the products you buy or bought from them unless it’s a standardized product purchased on an exchange.
The complicating matter is the role hedge funds play in this back office game. They’re not required to disclose anything to their investors so no one really know what they hold or what they’re involved in. There will be more shady relationships coming out in the next few months and I’m excited to see who will be involved next.