According to industry insiders Goldman Sachs has been quietly gathering up California's state and the municipal bonds of its major cities.
Notice the breathless confidential exclusiveness the reader feels with that first phrase. And "quietly" is a bit at odds with it being in the paper.
According to all known form it's a bet. If it wins big bonuses are handed out and if it loses they go to another financial institution and try again. Maybe they think California will elect a government which will make the pips squeak.
How can Goldman Sachs sieze control of California?