Bill Black: Fed Lets Goldman Sachs and Morgan Stanley Off Hook, Investors Profit Billions


Naked Capitalism has The Real News Network has the interview Bill Black: Fed Lets Goldman Sachs and Morgan Stanley Off Hook, Investors Profit Billions.

GREG WILPERT: So, first, what are the implications of the Fed allowing Morgan Stanley and Goldman Sachs to pass their stress test? That is, to pay investors even though they technically failed those tests, and should have kept most of these billions as assets to back them up.

BILL BLACK: OK. They didn’t technically fail the test. They actually failed the test. And what the new Fed, as you say, Trump appointees, have said, well, a failure isn’t going to be treated as a failure if you’re a really massive financial institution like Morgan Stanley and Goldman Sachs.


Ok, if you want to hate on the Federal Reserve Bank, here might be a perfectly valid reason to do so. Forget the fake news that the Fed is a private bank.

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