Thursday, July 15, 2010

A Little Justice

Goldman Sachs has agreed to pay $550 million to settle complaints relating to those deals in which it sold bundles of mortgages to its customers while simultaneously betting against the securities it was selling.

This represents a novel way to fund government activity: bail out the banks that are in danger of failure and, once they are restored to profitability, recoup the money by fining them for sleazy deals.

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