Politics & Government

December 30, 2009

Goldman's offshore deals deepened global financial crisis

When Goldman Sachs joined some of its Wall Street rivals in late 2005 in secretly packaging a new breed of offshore securities, it gave prospective investors little hint that the deals were so risky that they could end up losing hundreds of millions of dollars. Not only were investors buying shaky securities backed by mortgages, but they also were agreeing to pay Goldman if the risky home loans nose-dived in value — as Goldman was betting they would.

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