http://www.minyanville.com/articles/GS-Greenspan-market-government-intervention-refco/index/a/19218/from/yahoo
Stupidity should never be rewarded
And that's just what Hank wants to do as well as exonerate
himself and his buddies for doing nothing at their job
And ripping off their investors while doing that nothing.
This can be chalked up to nothing but negligence!
It deserves NO bailout nor reward!
It just show why Goldman Sachs should be out of business!
As we watch Refco open at $1 just 2 months after issuing an IPO at $22, some might say we need more government regulation to solve this problem.
First, let’s look at the problem: Each quarter, Refco transferred almost half a billion dollars of debt off its books to a third party in order to make its balance sheet and returns on equity look much better than they really were. Goldman Sachs (GS) and CSFB, the 2 leading underwriters, failed to discover this chicanery; they failed in their fiduciary responsibility. Goldman and CSFB earned over $40 million in fees for their effort, or lack thereof.
