On Friday afternoon Goldman released this detailed statement in its defense. Goldman stated that it lost more than $90 million on the CDO transaction (although it doesn’t explain how), and that the investor IKB and manager ACA were given “extensive information” about the underlying mortgages and understood their risks. In addition, Goldman noted that ACA, which helped select the securities, had the largest exposure to the transaction–$951 million–and had “every incentive to select appropriate securities.”
