Originally Posted by
Schmedlap
I haven't read through any of the documents on this yet. But my first impression is: "isn't this what a market maker does?" When dealing with sophisticated investors, generally you don't need to spend lots of time worrying about whether that investor has made a reasonable assessment of risk exposure - it's assumed that they're capable of doing it themselves, hence the characterization of "sophisticated investor." I guess I don't understand why this is an issue.
That's not a defense of Goldman, but just an initial reaction. Am I overlooking something?
Bookmarks