Yes but it was helped along in collusion with the government and...:
"The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen," Sylvain Raynes, an expert in structured finance at R & R Consulting in New York, recently told The New York Times. "When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson."
"Goldman told investors that its interests were “aligned” with theirs, even though Goldman held 100% of the short side of the security. According to the report, as the Hudson 1 securities declined in value, Goldman made $1.3 billion in profit at the expense of the clients to which it had sold the securities. "