To everyone shrieking “Goldman Sachs broke the law,” “Goldman Sachs is evil,” “Goldman Sachs is this,” “Goldman Sachs is that,” to the SEC, to the peasants, to the window, to the wall, one voice of reason– the only one that counts– is here to say “Stuff it. These guys are cool.” His (nick)name is Bubba and in a wide-ranging interview with Maria Bartiromo that will air on CNBC this afternoon, he told her we should all consider getting off GS’s nuts (vis-à-vis BS lawsuits).
BARTIROMO: But there’s also pressure coming from investigations. I mean, does it–does it seem to you that Wall Street crossed the line? Is Wall Street broken? How are we going to get trust back in the system?
Pres. CLINTON: Well, I think…
BARTIROMO: And did they do anything wrong?
Pres. CLINTON: First of all, all I know is what I’ve read in the press, and I see that there are a lot of firms now that are being questioned by the SEC. I said the other day, and some of my friends got a little hot at me for saying it, that based on what I had read in the press about the–of Goldman and the CEO, it didn’t seem to me that that was illegal, what they did. If we don’t think it’s advisable for people to be gambling one step removed on derivatives because it adds to instability in the marketplace, then there are plenty of ways to deal with that without claiming that it’s illegal. You can simply say that you can’t have derivative trading in those areas, or you can simply raise the margin requirements significantly, or you can do what I think will be done with the securitized home mortgages, saying that the people that issue the mortgages, the original extender of the loan, have to maintain some position in the securities; that is, they can’t get rid of all their risk, because that’s one of the things that caused this bubble to get out of hand.