You are no doubt aware of the SEC, and criminal, investigations of Goldman Sachs misleading investors by selling them bad CDOs, and then betting against the instruments.^*

Well, it appears that practice may have been more common than previously understood, because Morgan Stanley is under criminal investigation for similar activities. (see also here and here)

The CDOs in question were named after dead presidents, James Buchanan and Andrew Jackson were two of the names, but they appeared to have been referred to generally as “Dead Presidents.”

Seriously, these guys watched the movie Wall Street, and they though that Gordon Gecko was a Christ figure.

^*Earlier posts on Goldman Sachs’ alleged misdeeds here, here, here, here, here, and here.