"New revelations about a billion-dollar derivatives dispute between Goldman Sachs Group Inc and Morgan Stanley underscore just how hard it will be for Wall Street to convince investors to buy innovative new products in the near term.
That suspicion on the part of clients will make it only harder for banks to boost their trading revenues, analysts said.
To be sure, memories on Wall Street are short and investors' wariness may not last, but for now it's real, experts said.
A report by a Senate subcommittee is set to disclose details about a derivatives transaction that Goldman used to bet against the housing market starting in 2006, according to the Wall Street Journal. Morgan Stanley took the other side of a big part of the deal."..........read more here
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