Pay attention to business partners
Greg Gordon, an investigative reporter for McClatchy Newspapers, continues its series on Goldman Sachs by looking at the investment bank’s connection to New Century Financial Corp., one of the largest subprime lenders before the market collapsed. His story entitled, “Why did blue-chip Goldman take a walk on subprime’s wild side?” says:
A glimpse inside New Century’s operations sheds light on how one of Wall Street’s proudest and most prestigious firms helped create a market for junk mortgages, contributing to the economic morass that’s cost millions of Americans their jobs and their homes.
“We were always wondering how Goldman Sachs got out of the subprime housing business and took minor losses and escaped relatively intact,” Greg says in a video posted on the site.
Today’s Tip: Pay attention to companies’ business partners.
Keeping an eye on your companies and their business partners could give you a heads-up on industry trends or a new direction your companies are taking.
