Senderra was one of the divisions within Goldman Sachs that was first to hit the chopping block. Located in Lancaster County, South Carolina, Senderra was in charge of handling sub-prime loans for the Wall Street giant. The fallout continues to affect not only the individuals who called this town home, but it has also increased unemployment within Lancaster County to 18%.
An analysis done by the Wall Street Journal of data estimates that between 2006 and 2008. Senderra was responsible for $1.71 billion in badly written sub-prime loans that they compiled and sent to Goldman Sachs to be sold as a bundled package known as mortgage backed securities. Losses on these securities were estimated to be 20%.
The link between Goldman Sachs and Senderra goes back to 2005. This is when Goldman Sachs became "a major investor" in Senderra. Many Senderra employees were not aware of Goldman's tie to their company. It was only stated that there was a major Wall Street investment company who was backing their company. It was not until 2007 when Senderra was purchased by Goldman Sachs for $14 million that the connection was revealed.
The acquisition of Senderra brought clarity to Goldman Sachs mortgage division. The merging of the two companies gave Goldman Sachs access to Senderra's software that touted the ability to underwrite a mortgage in seconds. At its peak Senderra employed 200 employees, now it has been reduced to less than 90. In addition to the numerous other positions that were lost, the wake of devastation was immense. The total number of jobs that were lost is estimated to be 700. In a town like Fort Mills, South Carolina where there are only 10,000 residents, the loss will be felt for years.
The sub-prime meltdown has found ways to financially destroy anyone who came within three feet of them; it is going to take time for the fall out of these badly written loans to settle. Once the dust settles it is hoped that new regulations and government oversight will prevent the financial stability of the country to be threatened by the individuals who seek financial gain by any means necessary.
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