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Originally posted by GreenBicMan
I wanted to add this..
Lets say they are in for 100:1 leverage
That means 1% of total needs to be in account
So it it is 100 TRILLION they need 1 Trillion
If it is 200:1 leverage (borderline insane)
That means .5% of total needs to be in account so 50 Billion
We need to find out what the margin requirement is then you can figure out everything else. But it would be foolish to debate this without all the facts
If I was a big player for instance and known to be on the right side a greater percentage of the time I do not want you (if you also had great capital) following my tail. That ruins my edge.
Blankfein, Cohn And Viniar Were All Supervising Goldman's Mortgage Unit Operations
One of the most ludicrous claims over the past few days has been that the shady aspect of Goldman's mortgage unit operations began and ended with Fabrice Tourre, as per the SEC's complaint.
The NYT's Louise Story has just disclosed the far too obvious: "By early 2007, Goldman’s mortgage unit had become a hive of intense activity. By then, the business had captured the attention of senior management. In addition to Mr. Blankfein, Gary D. Cohn, Goldman’s president, and David A. Viniar, the chief financial officer, visited the mortgage unit frequently, often for hours at a time."
Louise presents a comprehensive analysis of the chronological shift in mood over US real estate among Goldman's ranks, in which it become obvious that the very heads of Goldman were instrumental in making the critical decision to part ways with Wall Street's optimistic groupthink, driven primarily by the input of Goldman salesmen who listened to hedge funds and advised the firm's executives and analysts (coupled with the input of Tourre and Egol) that some of the "smartest" money was turning bearish on real estate as early as 2006.
Why should they give up their countless hours of work