Housing Industry -- New Synthetic CDO Cases
I especially love the title of this one (Timberwolf).
NB: I am not sure, but Naked Shorts and Credit Default Deals -- taken together may have also been included somehow in Synthetic CDO's (mortage-backed securities), just in reverse (ie on the other side of the trade).
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lawsuit from Australian Hedge fund...
The Australian June 14, 2010 12:00AM
US Securities and Exchange Commission investigators are focusing on another mortgage-backed asset created by Goldman Sachs as they attempt to bolster their $US1 billion ($1.1bn) fraud case against the embattled bank.
Hudson Mezzanine, a synthetic collateralised debt obligation (CDO), was structured by Goldman in late 2006, shortly before the bank made and sold Abacus, the now-notorious CDO at the centre of a high-profile securities case against the bank.
In April, the SEC charged Goldman and one of its traders with fraud, accusing them of failing to tell investors that Abacus was created so that one of Goldman's hedge fund clients could bet that it would go bust. The collapse cost investors $US1bn. Last week, Australian hedge fund Basis Capital also sued the investment bank for $US1bn, accusing it of fraudulently selling it a now notorious CDO called Timberwolf that let to the hedge fund's collapse.
AI
