What Are Your Thoughts About This Goldman Op-Ed [View All]

This is an op-ed written in the New York Times that states Goldman Sachs is not the only villlan in the story of the financial collaspe. The author states that many indidivuals and groups could have done things to prevent the collaspe. The author starts with ACA and IKB, the two investors involved in the Goldman Abacus deal. The author mainly restates what Fabrice Tourre told the Senate Subcommittee on Investigations, that each investor could have figured that the deal would lose money. The author then moved on to the ratings agencies and claimed that if the ratings agencies has done their job none of these deal would have been done. Finally, the author moved on to congress and listed the things Congress did and did not do in the lead up to the financial crisis.

I do agree with some of the op-ed. It would have been good if the ratings agencies had rated the packages the way they should have been rated. Also, government regulators should have prevented some of these actions. In addition, it would have been good if Congress had done a better job dealing with this issue. However, I do not think Goldman should be let off the hook for the things that were done by the company.

http://www.nytimes.com/2010/04/27/opinion/27mclean.html