Goldman Sachs Crowns Shady Banker Who Destroyed Bear Stearns and Scammed Investors Its Global Head of Mortgage Trading

Jeffrey Verschleiser is, in the words of Matt Taibbi, "a former Bear Stearns executive who was instrumental in helping blow up that venerable firm." He is famous for being the dude who rented out all 94 rooms of an Aspen Hotel for his daughters bat mitzvah, an anecdote that embodied the gross excess that still proliferates on Wall Street, but much grosser is that he allegedly scammed as much as $55 million in three weeks by shorting his clients, screwing over Bear Stearns' bond insurers and collapsing the company. So you'd think that after the colossal economic dump he helped usher in, Wall Street would have banned this guy from ever stepping foot in a firm again, right? Yeah, Wall Street doesn't work that way: he's now at Goldman Sachs, and was just appointed its global head of mortgage trading. Taibbi:

I'm sometimes asked if I've noticed any change in Goldman, Sachs since the financial crash of 2008. I'd suggest that anyone who would ask that question simply check out this news item. It's not merely that Verschleiser appears to be a titanically entitled asshole of the Let-Them-Eat-Cake variety; it's also that this is a guy who was personally named in a number of major lawsuits involving exactly the sorts of tawdry behaviors that caused the crash -- like knowingly dumping "sack of shit" mortgages on the market, or betting against your own clients after sticking them with millions' worth of defective products.

As if we needed more reasons to regret the bailout.


AlterNet / By Julianne Escobedo Shepherd

Posted at March 13, 2012, 7:17am

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