{"id":541967,"date":"2010-04-23T07:50:31","date_gmt":"2010-04-23T11:50:31","guid":{"rendered":"http:\/\/www.businessinsider.com\/george-soros-cdos-are-dangerous-and-must-be-regulated-2010-4"},"modified":"2010-04-23T07:50:31","modified_gmt":"2010-04-23T11:50:31","slug":"cdos-and-cdss-must-be-regulated-because-they-have-no-social-benefit-gs","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/541967","title":{"rendered":"CDOs And CDSs Must Be Regulated Because They Have No Social Benefit (GS)"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4b83fdfd00000000001b6ffb\/soros.jpg\" border=\"0\" alt=\"soros\" \/><\/p>\n<p>Goldman Sachs, we can be sure, will vigorously contest the civil suit  brought against it by the United States Security and Exchange  Commission (SEC). But, regardless of the eventual outcome, the case has  far-reaching implications for the financial reform legislation that the  US Congress is now considering.<\/p>\n<p>Whether or not Goldman is guilty, the transaction in question clearly  had no social benefit. It involved a complex synthetic security that  was derived from existing mortgage-backed securities by cloning them  into imaginary units that mimicked the originals. This synthetic  collateralized debt obligation (CDO) did not finance the ownership of  any additional homes or allocate capital more efficiently; it merely  swelled the volume of mortgage-backed securities that lost value when  the housing bubble burst. The primary purpose of the transaction was to  generate fees and commissions.<\/p>\n<p><strong><a href=\"http:\/\/www.project-syndicate.org\/commentary\/soros58\/English\">Read the rest at Project Syndicate &#8211;&gt;<\/a><\/strong><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/george-soros-cdos-are-dangerous-and-must-be-regulated-2010-4#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/LJfXK-W4Zd0\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs, we can be sure, will vigorously contest the civil suit brought against it by the United States Security and Exchange Commission (SEC). But, regardless of the eventual outcome, the case has far-reaching implications for the financial reform legislation that the US Congress is now considering. Whether or not Goldman is guilty, the transaction [&hellip;]<\/p>\n","protected":false},"author":6867,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-541967","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/541967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6867"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=541967"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/541967\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=541967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=541967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=541967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}