Financial Res Ipsa Loquiter – Part 2 [Note: please return to this post after reading Part 1] Even people who agree that holding Wall Street accountable is a laudable goal are likely to raise four objections. The most serious arguments — and the rebuttals — are: One. “No laws were broken.” Specifically, the SEC allowed...Read More
Financial Res Ipsa LoquiterIf the stock market surged 15% in the week since Bernie Madoff finally went to prison, just imagine what it would do once the senior management at companies like AIG, Citigroup, Goldman Sachs, and Fannie Mae are held accountable for their behavior. And why shouldn’t they be? Thanks to the legal principle...Read More
Dealing with AIG: More Ideas One day after [the President’s] economic advisers insisted that their hands had been tied by contracts requiring the payments, Mr. Obama ordered the Treasury Department to “pursue every single legal avenue to block these bonuses” and make the American taxpayers whole. –“Obama in Effort to Undo Bonuses at AIG“; The...Read More
