Goldman Sachs was not the only investment bank selling the complex securities that ultimately resulted in staggering losses for the German bank IKB. Traders at Deutsche Bank sold similar CDOs without revealing John Paulson's involvement. More »
The German bank on the losing end of the Goldman Sachs derivatives deals that have attracted the ire of the Securities and Exchange Commission was so absorbed in the pursuit of high-yield returns from financial instruments linked to the U.S. housing market that it preferred to lose one of its top executives rather than change course. This single-minded pursuit of yield provides an important context for the SEC's case against Goldman. In hindsight, it can appear… More »
