"The Securities and Exchange Commission should be very interested in any financial company that secretly decides a financial product is a loser and then goes out and actively markets that product or very similar products to unsuspecting customers without disclosing its true opinion," said Laurence Kotlikoff, a Boston University economics professor who's proposed a massive overhaul of the nation's banks. "This is fraud and should be prosecuted." Does this mean it's unethical to sell a stock if you think the company's no good?
Of course, if GS was being paid to give investment advice to the parties to whom it sold the junk, that would be wrong. But it seems that was not the case here. GS was simply the lesser fool selling to the greater fools. Nothing wrong with that.
McClatchey is just jealous.