Oct
23rd
Fri
23rd
The Beauty of Straight Questions
Bloomberg had a story on Goldman Sachs and the moral hazard issue of being too big too fail.
Viniar’s remarks came after a reporter for the Daily Mail of London, Simon Duke, posed a perfectly reasonable question: “It seems fairly clear that, post-Lehman, that the U.S. Treasury’s not going to let any bulge-bracket firms go under,” Duke began, according to an audio recording of the call. “How can you justify these levels of pay, when you effectively enjoy an implicit guarantee from the U.S. taxpayer?”
