[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/04/20/art.sachs.gi.jpg caption="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."