Goldman Sachs, Illegal Market Manipulation, and Short Squeezes via TheLongShortTrader
In 2011, the U.S. Senate Permanent Subcommittee on Investigations said Salem and other Goldman Sachs Group Inc (NYSE:GS) traders tried to manipulate prices of derivatives linked to subprime home loans in 2007 for their own benefit. The subcommittee’s assertions were based in part on Salem’s self-evaluation, in which he wrote “we began to encourage the squeeze with plans of getting very short again after the short squeeze caused capitulation of these shorts.”
Goldman Sachs Group Inc (NYSE:GS) denied any attempted manipulation.
“The translation of that sentence is, you know — is very different than it was, at times, made out to be,” Salem said at the hearing. “There’s no wrongdoing in that sentence.”
from: bloomberg.com
