A Fundamental Problem with Goldman Sachs' GSAMP Trust, Impeding Goldman's

question 16

Multiple Choice

A fundamental problem with Goldman Sachs' GSAMP Trust, impeding Goldman's ability to foreclose on defaulted mortgages was that:

• A)Homeowners' equity in the securitized mortgages was less than 1 percent
• B)40 percent of the securitized loans had little or no documentation
• C)Investors relied on Goldman Sachs
• D)The underlying assets were second mortgages
• E)The mortgages were allocated into thirteen tranches with different risk characteristics

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