Goldman Sachs didn't predict the 2008 crisis, they just hedged their risk
Marty Chavez · Marty Chavez (Sixth Street): Finding a Single Source of AI Truth · Apr 30, 2024 · at 14:14
Marty Chavez, former Goldman Sachs CIO and CFO, responds to allegations that Goldman foresaw the subprime crash, stating the firm hedged its CDO risk based on real-time visibility rather than macro predictions.
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“We didn't know that the financial crisis was coming. Of course, you know, we got in the press and elsewhere accused of all kinds of crazy things. Like they were the only ones who hedged so they must have known it was coming. We were just predictors of the present and thought better hedge this position, hence the big short.”
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