Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend  
Printer Friendly Page Save As Favorite Save As Favorite View Article Stats
No comments

Goldman Executive Who Made Millions on Housing Bust Now Wants to Make Millions on Housing Un-Bust "Hedge Fund"

Quicklink submitted by Amanda Lang     Permalink
Related Topic(s): ; ; ; , Add Tags

View Ratings | Rate It

Headlined to H3 7/20/12

Become a Fan
  (9 fans)


At nymag.com

It's a shame Occupy Wall Street is no longer the force it used to be, because the movement could have had a field day with the story of Donald Mullen. Mullen, a former Goldman Sachs mortgage executive who helped design the trades that allowed Goldman to profit from the collapse of the housing bubble, is raising money for a hedge fund that will buy up foreclosed homes and rent them out, Reuters reports. Let's go over this a little more slowly, because it is actually sort of crazy: In the years leading up to the financial crisis, a team of mortgage executives and traders at Goldman Sachs predicted that the housing market was in trouble. So they designed a massive bet against it, using a bunch of esoteric financial instruments known as collateralized debt obligations that would pay off in the event that housing prices fell and homeowners defaulted on their mortgages.

Read the rest of the story HERE:

At nymag.com


 

Comments

The time limit for entering new comments on this Quicklink has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
No comments