Reading between the lines, it sounds like what he's basing this part of the article on boils down to Goldman having shorted a ton of ABX (more than pure hedging would require - as if that's possible to know in such a market..) long before the rest of the market caught up to subprime realities. Well, perhaps so. If so, that's called foresight and the will be rewarded for it.
As for the conspiracy theory about the Kanzius paper, I do not even understand what Stein is trying to say exactly. Sometimes Stein's mind seems to lose its sharpness.
Goldman Sachs has been untouched by the sub prime mess....Compare that to other Wall Street firms that weren’t so connected and with revolving door Treasury jobs