Greece, in 2001, sought to enter the euro zone but learned that it had  too little revenue and too much debt to meet the European central bank’s  standards. The Greek government turned to Goldman Sachs, paying the  firm $300 million to fix the books. Goldman provided cash up front in  return for mortgaging Greece’s airport fees and lottery proceeds until  2019; the loans were called sales, a classification that camouflaged the  debt.

Read Too Bad Not to Fail from our Summer 2010 issue.

Greece, in 2001, sought to enter the euro zone but learned that it had too little revenue and too much debt to meet the European central bank’s standards. The Greek government turned to Goldman Sachs, paying the firm $300 million to fix the books. Goldman provided cash up front in return for mortgaging Greece’s airport fees and lottery proceeds until 2019; the loans were called sales, a classification that camouflaged the debt.

Read Too Bad Not to Fail from our Summer 2010 issue.

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