Goldman Sachs and the Apple structured bond scam – Apple 2.0 -Fortune Tech


 

This would not be the first time Goldman Sachs made money betting against its clients. In 2010 the company Matt Taibbi memorably described as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,” paid a $550 million fine — the largest ever by a Wall Street firm — to settle SEC charges that it misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.

According to Bloomberg, investors bought $1.75 billion of structured notes tied to Apple last year, making it the second-most popular reference measure after the S&P 500 index. According to a report on these types of notes in the Wall Street Journal last week, the vast majority of the 450 Apple structured bonds issued in 2012 are now underwater.

Goldman Sachs and the Apple structured bond scam – Apple 2.0 -Fortune Tech

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