Saturday, April 17, 2010

Other major banks did deals similar to Goldman’s

[h/t to Propublica]

As we reported at ProPublica last week, many other major investment banks were doing a similar thing .

Investment banks including JPMorgan Chase , Merrill Lynch (now part of Bank of America), Citigroup, Deutsche Bank and UBS also created CDOs that a hedge fund named Magnetar was both helping create and betting would fail. Those investment banks marketed and sold the CDOs to investors without disclosing

Magnetar's role or the hedge fund’s interests.

Here is a list of the banks that were involved in Magnetar deals, along with links to many of the prospectuses on the deals, which skip over Magnetar's role. In all, investment banks created at least 30 CDOs with Magnetar, worth roughly $40 billion overall. Goldman's 25 Abacus CDOs -- one of which is the basis of the SEC's lawsuit -- amounted to $10.9 billion .

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