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Matt Levine

Secret Fed Tapes Recorded Goldman's Capital Game

What was Goldman up to with Santander that set off the New York Fed supervisors? Collapsing mandatory exchangeables, seems to be the answer.

The New York Fed/Goldman Sachs secret tapes are the sort of thing where you'll mostly get out of them what you bring to them, so it's sort of pointless for me to tell you what to think. (Do read/listen to the story though! It's fascinating, whatever your priors.)

Instead I'll just tell you what I bring to the story, which is that I used to sell corporate equity derivatives. So I was intrigued by this: