Documents disclosed as part of the US Senate hearings into Goldman Sachs have revealed that the finance house’s dealers called one of their products “crap”, and called one $11 billion collateralised debt obligation they helped to sell, known as Timberwolf, “one shitty deal” and the whole idea “intellectual masturbation”. It praised its traders for “making lemonade” out of a “whole lot of lemons”.
These are the bankers who told us that their $55 trillion credit derivatives would take the risk out of their system.