Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank is reviewing derivatives contracts arranged between Goldman Sachs Group Inc. and investment banks with Greece.Read the full article...click here
“We are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece,” Bernanke said yesterday in testimony before the Senate Banking Committee in Washington.
Bernanke was responding to a question from Senator Christopher Dodd, a Connecticut Democrat, who asked if there should be limits on the use of credit default swaps to prevent “runs against governments.” Greek bonds slid yesterday amid concern the country’s credit ratings may be cut.
Would we like to guess what happens next? If Goldman Sachs chooses, it will admit no liability, accept some kind of "settlement", make a nice scene, cry "oh, oh no, please, don't cut off our self-regenerating, massive nuclear testicles" (for a great time, try "Matt Taibbi on Lloyd Blankfein's Balls" via Dealbreaker.
Publisher's Note: See our own RobertM report here in GS666 on Matt Taibi's story, Wall Street's Bail Out Hustle (the story referred to in Dealbreaker)...click here