The Peddling of Toxic Waste, otherwise known as CDOs being investigated

Seems the SEC is just catching up to the finance blogs.

The New York Times article, Banks Bundled Bad Debt, Bet Against it and Won (great title, about sums it all up!) outlines some new investigations.

Goldman was not the only firm that peddled these complex securities — known as synthetic collateralized debt obligations, or C.D.O.’s — and then made financial bets against them, called selling short in Wall Street parlance. Others that created similar securities and then bet they would fail, according to Wall Street traders, include Deutsche Bank and Morgan Stanley, as well as smaller firms like Tricadia Inc., an investment company whose parent firm was overseen by Lewis A. Sachs, who this year became a special counselor to Treasury Secretary Timothy F. Geithner.