Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/why-is-there-so-little-mention Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Why Is There So Little Mention of Toxic Assets? Economy Feb 22, 2010 11:25 AM EDT Question: Why is there no more mention of “toxic assets?” Does Goldman Sachs have any toxic assets on their balance sheet? Paul Solman: Well, Goldman was SELLING toxic assets like mortgage-backed securities to clients, but is proud of the fact that it stopped holding them for its own account sooner than its rivals. One charge against the firm is its having continued to sell toxic assets while betting against them with AIG, bets we taxpayers wound up making good on. As to Goldman’s current balance sheet? Who knows? Remember, today’s meat could be tomorrow’s poison. Hey, if interest rates were to spike suddenly, TREASURY BILLS could become toxic, right? A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now
Question: Why is there no more mention of “toxic assets?” Does Goldman Sachs have any toxic assets on their balance sheet? Paul Solman: Well, Goldman was SELLING toxic assets like mortgage-backed securities to clients, but is proud of the fact that it stopped holding them for its own account sooner than its rivals. One charge against the firm is its having continued to sell toxic assets while betting against them with AIG, bets we taxpayers wound up making good on. As to Goldman’s current balance sheet? Who knows? Remember, today’s meat could be tomorrow’s poison. Hey, if interest rates were to spike suddenly, TREASURY BILLS could become toxic, right? A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now