Goldman Sachs Mortgage Bets
The synthetic CDOs being reviewed typically don’t contain actual mortgages, the Times said. Instead, the CDOs bundled credit-default swaps, a type of insurance that can require an investor on one side of the contract to pay the other side when debts go into default.
The Financial Industry Regulatory Authority, which polices broker-dealers, is looking into whether firms such as Goldman Sachs Group Inc. Read more
