Goldman, Deutsche Bank Duped Investors: Report

Law360, New York (April 13, 2011, 11:15 PM EDT) -- Goldman Sachs Group Inc. and Deutsche Bank AG regularly duped clients into buying securities they described as "crap" and "pigs" and profited from the exchanges, a scathing new U.S. Senate report on the origins of the financial crisis revealed.

The banks used net short positions to profit from the downturn in the mortgage market, a direct conflict of interest with the clients to whom they were selling the securities, according to the report issued by the Senate Committee on Homeland Security and Governmental Affairs' permanent subcommittee...
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