From the Icelandic perspective SEC’s charges against Goldman Sachs raise interesting questions. In the Icelandic banks some shareholders and companies were allowed to make huge profits and to borrow exorbitant amount of money against the interests of other shareholders and other clients.
The charges against Goldman Sachs indicate that some clients and the bank itself profited from Abacus, the fund at the core of the charges. I would be interested in knowing who exactly was allowed to make profit and who was allowed to lose, also in possibly similar investment schemes. The answer to this question would go a long way to map the power sphere of Goldman Sachs.
PS For those who want to understand what SEC charges agains Goldman Sachs are about two articles by Steve Randy Waldman clarify the case, even to the layman; Goldman-plated excuses; L’affair Goldman in price/information terms. Waldman blogs at Interfluidity.
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