Wednesday, December 26, 2007

Wall Street Trio In Line For $15 Million Dollar Bonuses, Thanks to Sub-Prime Cleanup

THREE New York traders celebrated one of the biggest windfalls in Wall Street history after making a £2bn gamble that sub-prime mortgages would fall in value.
The trio at Goldman Sachs, the US investment bank, watched their winnings grow as the rising number of mortgage defaults caused chaos in a worldwide financial crisis.

Dan Sparks, 40, Michael Swenson, 40, and Josh Birnbaum, 35, bet that the sub-prime mortgage market was in trouble and scooped $4bn (£1.96bn) for the bank, sources told the Wall Street Journal.

Their win, one of the biggest windfalls in the securities industry in years, has wiped out between $1.5bn and $2bn of mortgage-related losses elsewhere at the bank.

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