That I can speak of and trully know, the risk is minimal.
They will probably have less than 1.25B in writedowns and their collaterized debt on issuing such loans will probably amount than less than 725M(fully normalized).
Fortunatley, GS wasn't really doing much business in the whole sub-prime sector as many of their peers were. Instead, they ventured globally an searched for aggressive global growth funds. Good to say, this has actually helped tons.
GS is well diversified and their exposuree to such mess is minimal but it can still posses risk to the whole financial sector(if revisons are off).
Originally Posted by Hyper
Agreed on the push down, Citi news has bad joo joo in the air. Is there any info on GS exposure to these bad paper loans and bad investments?