The “Magnetar Trade”

As one well known market commentator put it over the weekend in his widely read e letter – there is always more than one cockroach. With Goldman Sachs now charged with fraud in respect to a lack of disclosure the question now is whose next. The so-called Magnetar Trade involved the same trade as Goldman did but with 9 other major well known banks. The market has been a little dismissive of the Goldman Sachs fraud case today (reading the Goldman’s propaganda no doubt) but these banks are in for massive litigation costs and may have to make up the losses of the investors – no small change indeed.