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goldman sachs

Goldman Sachs Toxic Mortgages: It’s Worse Than You Think

by Moe Bedard

Our tale begins in April 2006, when Goldman Sachs (GS, Fortune 500) sold $494 million of securities to institutional investors seeking yields somewhat above those that were available on U.S. Treasuries or high-rated corporate bonds.

It was an especially hinky offering, because it was backed by second mortgages rather than by traditional first mortgages. A first [...]

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Goldman Sachs mortgage company cleared to give aid

by Moe Bedard

WASHINGTON, Aug 14 (Reuters) – A mortgage finance company owned by Wall Street bank Goldman Sachs (GS.N) could garner $775 million in government rescue funds if the company aggressively eases the terms of failing home loans, the U.S. Treasury said on Friday.

Read more from Reuters

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Litton Loan Servicing, an Affiliate of Goldman Sachs, Closes Deal on Fremont General’s Servicing Rights

by Moe Bedard

The servicing business has been going through some changes lately in the form or mergers and acquisitions. Obscene profits can be made in the servicing arena. Especially in today’s market of delinquencies and defaults.
All this spells is extra fees and income for today’s servicers.
So, it is no surprise that Litton, an affiliate of Wall Street [...]

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Goldman Sachs to Cash in Big Time With the Litton Loan Servicing Purchase

by Moe Bedard

This is a very interesting purchase by Goldman Sachs. The question that many people will ask is “why the hell would anyone want to buy a company that services a tremendous amount of  adjustable rate mortgages; AKA, suprime slime?”
Because servicing subprime mortgages is a very profitable business, that’s why!
Take this quote for Bloomberg;
Subprime loans are made to [...]

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