Carl Levin

John Gapper

As I noted in my earlier post, I don’t think the fact that Goldman Sachs was short of the residential mortgage securities market in 2007 (to the degree that it was) was, as the Senate investigations subcommittee seems to think, a scandal.

Politicians and regulators tend to be biased against short sellers, believing that going short is somehow wrong or unpatriotic. But the fact that Goldman protected itself better than other banks such as Lehman Brothers from the downturn was neither illegal nor wrong in itself. Read more