With firms having gotten their post–global financial crisis ducks in a row, managers feel more confident about going back to over-the-counter products.
In Goldman’s alleged fraud case there was a money manager in the mix: ACA Management LLC.
Merrill, Deutsche and Goldman collected collateral on CDS holdings as AIG’s was hit by massive losses on CDO’s.
When Goldman, Sachs & Co. somehow managed to escape the worst of the market meltdown in 2008, more than a few critics insisted that government favoritism, not skill, made all the difference.
Nerd on the Street Blog: Falling for a toxic mix of leverage and phantom assets.