Still, it isn't merely the underwriting of CDOs that the Feds appear to be interested in, but the potential conflict between selling the deals and betting against them without making clear to buyers that's what they were doing. Goldman's competitors appear to have done far less shorting of CDOs than Goldman did. Still, the rivals did some shorting, and they could be hearing from federal investigators soon if they haven't already.
In the meantime, Goldman investors can take heart. Goldman shares were up slightly in early trading on Wednesday amid the sharp selloff in Morgan Stanley. See, Goldman: you're not that special.
-- Written by Dan Freed in New York.