Goldman Sachs Blasted For Sucking On Lehman's Corpse

dick fuld lehman

The New York Post highlights an apparent contradiction at Goldman Sachs, with respect to its Lehman exposure.

Goldman, in last month’s claim, said it was initially owed $4.2 billion, but reduced that figure to $1.5 billion after it replaced some Lehman positions.

A second Goldman entity claims it’s owed $999 million, bringing the total Goldman claim to around $2.5 billion.

However, during a Goldman earnings conference call on Sept. 16, 2008, a day after Lehman filed for bankruptcy, Viniar during Goldman’s earnings conference call downplayed its exposure to both Lehman and American International Group, the insurance giant that back then was on the verge of collapsing.

On the call, he went on to say that the company’s exposure to both companies would prove “immaterial.”

There isn’t necessarily a contradiction though. If Goldman had its Lehman exposure hedged, it could have avoided losses, while remaining in a position to make claims against the bankrupt company.

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