Financial Arson Watch III

Robert Waldmann

Goldman Sachs accused of (civil) Financial Arson

I don’t want to bore readers so I’ll just mention, again, that this wouldn’t have been possible if cash settlement CDS were not allowed. In all other cases it is not legal to insure against a risk that one doesn’t bear. A simple law which says that Courts must consider all CDS contracts signed after May 1 2010 to be physical settlement CDS contracts if anyone seeks enforcement would eliminate the opportunity for the alleged fraud.