Goldman Sachs urged shorting against Muni bonds it sold to clients

November 11, 2008 by · Leave a Comment
Filed under: Stock Market News 

Well at the time the Californian Municipal bonds most likely looked good in a market that was thought to continue to go up forever.  Now that reality and common sense has set in, they are giving good investing advice.  In capitalism these type of things happen in the battle of greed vs. fear.  When I read this I just chuckled for a bit, everyone needs a little entertainment during all this doom and gloom (which is warranted).

News:

Goldman Sachs Group Inc, which acted for the state of California in selling bonds, has urged some of its big clients to place investment bets against some of those bonds this year, the Los Angeles Times reported.

The paper said that Goldman declined to discuss the details of its trading strategy.

Goldman spokesman Michael DuVally told the paper that the firm was no longer giving the trading advice to clients. He declined to elaborate.

The newspaper said the company did not inform the office of California Treasurer Bill Lockyer that it was proposing a way for investment clients to profit from California’s economic downturn.

Source: Reuters

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!