Greg Lippmann, the former Deutsche Bank trader who brokered tons of shorts during the financial crisis, told the FCIC during an interview that he knows of at least 50 hedge funds that shorted the subprime market.
He brokered the trades for them at Deutsche.
Obviously the big winners were guys like John Paulson, Michael Burry, Phil Falcone, and Kyle Bass, but apparently many more people made at least some money off this trade, or at least knew how to hedge their bets.
This might shed some light on why Goldman’s Fabrice Tourre told his unit that the best customers to target for CDO sales were “buy and hold rating-based buyers” rather than “sophisticated hedge funds” that “will be on the same side of the trade as we will.”
For more coverage on what the FCIC’s investigation into what caused the financial crisis uncovered, click here >
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