Christian Debt Recovery

Synthetic Collateralized Debt Obligations

June 27th, 2009 |

Author: Gavin

synthetic collateralized debt obligations

Goldman Sachs, CDOs and Opolis Secure Mail

Goldman Sachs is currently scrutinized for alleged fraud linked to marketing of synthetic collateralized debt obligations (CDOs) which the firm had structured.

On 16 April 2010, the Wall Street Journal reports that Fabrice Tourre, the Goldman Sachs executive accused by the Securities and Exchange Commission of making misleading statements about toxic investments, had a grandiose view of his own position in the financial system, according to emails the SEC said he wrote: In one of them Tourre – according to the SEC – proclaimed, “More and more leverage in the system. The whole building is about to collapse anytime now…Only potential survivor, the fabulous Fab(rice Tourre)…standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!!” (Sic)

As the Wall Street Journal continues reporting: Tourre´s department was also of the view that CDOs were in terrible shape, according to the SEC. An 11 February 2007 email that the complaint says was sent to Tourre by the head of Goldman Sachs structured production correlation trading desk allegedly said, “… the cdo biz is dead we don´t have a lot of time left….” – Based on that the SEC argues that Goldman Sachs and Tourre misled investors about a synthetic collateralized debt obligation, or CDO, that hinged on the performance of subprime residential mortgage-backed securities.

Amazing then the response by Goldman´s CFO in the course of a Senate hearing on 27 April 2010: “I think that’s very unfortunate to have (this) on email.”

What has Opolis Secure Mail to do with that? – Now, using encrypted emails would not have helped Goldman in possibly having mis-judged markets or even having to undergo an SEC investigation by now. – What it may have helped, though, is to avoid the leakage of embarrassing judgmental messages, such as the ones by Mr Tourre.

With Opolis (http://www.opolis.eu) emails are point-to-point encrypted. So, even in the unlikely case that an Opolis email was intercepted, it could not be interpreted or read. Further, with Opolis the sender has always full authority over what the recipient is allowed to do with a message and is empowered to monitor and follow the entire path of a message. For example, the sender decides whether the recipient may copy, print, respond to or forward a message or not.

Opolis is for free and running in both, the Windows and Apple worlds, and currently available in English, German, Czech and Russian language versions. – Goldman Sachs may actually like that quite a bit …

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