In a testy exchange at today’s Senate grilling of Goldman Sachs executives, Sen. Carl Levin, D-Mich., confronted a former Goldman trader with an e-mail in which another former Goldman executive described a mortgage-backed deal as “sh**ty.”
The transaction in question was Timberwolf Ltd., a $1 billion collateralized debt obligation holding pieces of other CDOs. In an e-mail to Daniel Sparks, then head of Goldman’s mortgage desk, Thomas Montag, Goldman’s former head of sales and trading, called a set of mortgage-linked investments sold by the firm as “one shi**y deal,” according to an e-mail that Sen. Levin quoted. Within five months, Timberwolf lost 80 percent of its value.
“Do you think it was a sh**ty deal?” Levin asked Sparks, one of seven Goldman executives appearing today. Sparks said he did not recall the e-mail, and did not directly answer the question.
Full story: Sen. Levin Calls Goldman Sachs Allegations ‘Deeply Troubling’ – ABC News