From left, Hannelore Foerster/Bloomberg; Jin Lee/Bloomberg, Jin Lee/Bloomberg, Sara D. Davis/Getty
The Financial Crisis Inquiry Commission will begin its hearings Wednesday with, from left,
Lloyd C. Blankfein of Goldman Sachs, Jamie Dimon of JPMorgan Chase,
John J. Mack of Morgan Stanley and Brian T. Moynihan of Bank of America.
"Mr. Blankfein, your firm, and others, created and sold bundles of mortgages known as collateralized debt obligations that it simultaneously sold short, or bet against. These C.D.O.’s turned out to be bad investments for the people who bought them, but your short bets paid off for Goldman Sachs."
In the process of selling them to institutional investors, however, your firm lobbied ratings agencies to assign them high ratings as solid bets — even as your firm planned on shorting them.
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