The Financial Times said Goldman Sachs plans to talk to U.S. regulators to find $50 billion in assets it could by from the struggling banks.
Those assets would be in addition to the $150 billion of its own assets it is moving to its Utah industrial loan corporation, a bank regulated in that state, the report said.
Despite the 2007-2008 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by selling subprime mortgage-backed securities short. Two Goldman traders, Michael Swenson and Josh Birnbaum, are credited with bearing responsibility for the firm's large profits during America's sub-prime mortgage crisis.
The pair, who are part of Goldman's structured products group in New York, made a profit of $4 billion by "betting" on a collapse in the sub-prime market, and shorting mortgage-related securities.
By summer of 2007, they persuaded colleagues to see their point of view and talked around skeptical risk management executives
Read more Goldman seeks to buy up to $50 billion in assets
Source: reuters - wikipedia
