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November 18, 2009
Goldman Apologizes. Ratner Arena Bond Would Lead to Same Late Regrets
Develop Don't Destroy Brooklyn
Goldman Sachs is the underwriter for the bond Ratner is struggling to have issued. Yesterday, Goldman Sachs had something to say:
Blankfein Apologizes for Goldman Sachs Role in Crisis
Nov. 17 (Bloomberg) -- Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group Inc., apologized for the firm’s role in some of the activities leading to the financial crisis.
“We participated in things that were clearly wrong and have reason to regret,” Blankfein, 55, said at a conference in New York hosted by the Directorship magazine. “We apologize.”
...Multiple press reports have stated that the problem Ratner is having is getting a good credit rating and insurance for the $700 million arena bond, and presumably part of the problem is the lack of a revenue model that could pay off the bond. A defalut on the bond would put New York State, and thus New York taxpayers, on the hook.
If Goldman goes forward with the arena bond (they have money to make in doing so) will they come back and apologize later? Wouldn't it be better to think twice before later regretting?
Posted by eric at November 18, 2009 10:13 AM