Discovered: How Goldman Hedged Its Exposure To CIT

"This is great news, and evidence that the financial system is actually working quite well. Rather than a series of domino hedges that all may topple, Goldman has taken a very conservative approach to limiting its risk from CIT. It also means that if CIT is allowed to fail, we don’t have to worry about some counter-party collapsing because it had sold too much CDS on CIT."