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Magnetar and Goldman Sachs: Connected?

Apr 26, 2010

Wondering what's the connection between our Magnetar story and the news about charges against Goldman Sachs? Pro Publica has an update about it on their site.

And lots of people have been asking if our story on Magnetar helped the New York Times break that story about Goldman Sachs. The answer is we don't know. But there have been lots of great reporters doing great work on this area of wall street for some time. Wall Street Journal reporters Serena Ng and Carrick Mollenkamp wrote about a disastrous Magnetar CDO all the way back in late 2007. And Gretchen Morgenson has been writing about Goldman Sachs in the New York Times for some time as well. Pro Publica's investigation uncovered a wealth of heretofore unreported information, like how many CDO's Magnetar sponsored, how much they were worth, and the fact that it was pushing for riskier assets to go into them. In addition, the breadth and depth of their inquiry fleshed out the larger story of what was happening on Wall Street in the CDO world.