Goldman Sachs reported its first quarterly loss since the firm went public in 1999, losing $2.29 billion during Q4 of FY08. Before anyone - especially those in the public sector - shed any tears, they should remember that Goldman recently began recommending the short-selling of municipal bonds (i.e. betting against public debt). This is particularly troubling given the fact that Goldman is not only one of the top 5 U.S. municipal bond underwriters, but is also the primary municipal bond underwriter for 10 out of the 11 states it recommends betting against. Conflict of interest much?
The states on Goldman's "naughty list" currently are:
- New Jersey
- California
- Florida
- Nevada
- Ohio
- Wisconsin
- Michigan
- Illinois
- Massachusetts
- Connecticut
- Hawaii
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