“The problem isn’t that Goldman went short and reduced risk — it’s how. To establish many of its short positions, the Senate report says, Goldman created new securities, backed them with its good name, and then strung together misleading statements to its customers about what it was actually doing. By shorting the way it did, the bank perverted the market instead of correcting it.”

—If I were a Goldman client, I’d have a very queasy feeling after reading this.