Goldman Sachs official likened CDO to excrement, reports Bloomberg

Bloomberg reports that Goldman Sachs’s former head of Americas sales and trading Thomas Montag described a cashflow CDO of ABS it sold to investors as “one sh**y deal”, in internal emails it says were released by senate lawmakers. It is not clear whether the asterisks were introduced by Montag or by Bloomberg to save the blushes of its delicate readers.

The CDO, Timberwolf I, was arranged by Goldman Sachs in March 2007 and managed by Greywolf Capital Management. It was backed by mezzanine ABS including CDOs and, according to Bloomberg, was bought by Bear Stearns Asset Management, among others.