KAUFMAN: I personally have a hard time believing that folks as smart as you guys didn’t see the housing market was having a bubble [in 2007].  And that the idea of going short was a good decision based on prudent managers looking at a market that was clearly falling apart.

Kaufman asked Viniar what Goldman Sach’s obligations were to its clients, and whether they should  have stopped selling mortgage-backed CDO’s to them when Goldman itself was shorting them.  Viniar didn’t see any apparent conflict of interest.

Goldman Sachs stock is up today.

KAUFMAN: I personally have a hard time believing that folks as smart as you guys didn’t see the housing market was having a bubble [in 2007].  And that the idea of going short was a good decision based on prudent managers looking at a market that was clearly falling apart.

Kaufman asked Viniar what Goldman Sach’s obligations were to its clients, and whether they should  have stopped selling mortgage-backed CDO’s to them when Goldman itself was shorting them.  Viniar didn’t see any apparent conflict of interest.

Goldman Sachs stock is up today.

Jane Hamsher

Jane Hamsher

Jane is the founder of Firedoglake.com. Her work has also appeared on the Huffington Post, Alternet and The American Prospect. She’s the author of the best selling book Killer Instinct and has produced such films Natural Born Killers and Permanent Midnight. She lives in Washington DC.
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