April 24th, 2010
03:00 PM ET
4 years ago

Goldman knew it profited from mortgage crisis

Goldman Sachs officials knew their bets against mortgages profited the firm, according to Senate documents.
Goldman Sachs officials knew their bets against mortgages profited the firm, according to Senate documents.

NEW YORK (CNNMoney.com) – Goldman Sachs officials knew their bets against mortgages, whose dramatic decline sparked the financial crisis, profited the firm, according to documents released Saturday by a Senate panel investigating the crisis.

"Of course we didn't dodge the mortgage mess," Goldman CEO Lloyd Blankfein told company executives in an e-mail dated Nov. 18, 2007. "We lost money, then made more than we lost because of shorts," or trading bets aimed at profiting when a bond drops in value.

Blankfein added: "Also, it's not over, so we don't know how it will turn out ultimately."

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Filed under: Goldman Sachs
soundoff (28 Responses)
  1. Djinn

    Surprise, surprise. Corporate greed exposed as everyday "business" and to hell with America and Americans.

    April 24, 2010 04:48 pm at 4:48 pm |
  2. Allen in Hartwell GA

    Any money they made went into their pockets, and any money they lost came out of our accounts. Then they get bailed out to give themselves bonuses. Will someone please put these crooks behind bars for life where they belong, after making them repay for their crimes.

    April 24, 2010 04:50 pm at 4:50 pm |
  3. harold

    Otherwise known as sorta like Racketeering.. kinda like huh?

    April 24, 2010 04:57 pm at 4:57 pm |
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