sachs. the county s also suing standard & poor s and moody s, those rating agencies told king county it s bet on mortgages was aaa safe. now, what if jack s house it failed to generate any bidders at monday s foreclosure auction so it goes back to the foreclosure bank and the big gamblers in this mortgage market, ikb lost so much that the german taxpayers had to bail it out. and over here in the u.s., you know what happened the the mortgage melt down forced american taxpayers to provide the nation s biggest banks with bailout money, including $10 billion for goldman sachs which the firm has since repaid. tony? allen, let s sort of drill down and bring this home to this senate committee hearing on investigations right now, hitting goldman for allegedly betting against the mortgage market and making big bucks on that collapse when goldman claimed it was not benefiting. right?
and why many are push for financial reform. our allan chernoff explains how goldman sachs allegedly bet against you and your neighbors. reporter: this is the house jack bought. jack in aberdeen, new jersey, repairman. jack fell behind in his mortgage. so far behind that he lost the house to a foreclosure. on monday it was put up for auction at the momnmouth. this is hedge fund manager john paulson. he bet that jack and thousands other americans would not be able to pay their mortgages. paulson bet right and made a billion dollars. this is goldman sachs, the nation s most prestige use investment firm. goldman sachs set up the bet for john paulson. jack s house was one of the cards. and goldman sachs was supposed to be shuffling the deck. german bank ikb bet that jack and thousand other homeowners