BILL MOYERS: So is this administration, which still has some Bush
holdovers in it, and now has a lot of Goldman people in it, is this
administration going to be able to pass judgment on Goldman Sachs?
WILLIAM K. BLACK Well, so far, they haven’t been able to do it.
They can’t even get themselves to use the word fraud.
There’s a huge
part that is economic ideology. And neoclassical economists don’t believe that
fraud can exist. I mean, they just flat out — the leading textbook in corporate
law from law and economics perspective by Easterbrook and Fischel, says — I’ll
get pretty close to exact quotation. “A rule against fraud is neither necessary
nor particularly important.” Right?
Notice how extreme that statement
is. We don’t need laws. We don’t need an FBI. We don’t need a justice
department. We don’t even need rules like the SEC. The markets cleanse
themselves automatically and prevent all frauds. This is a spectacularly naïve
thing. There is enormous ideological content. And it fits with class. And it
fits with political contributions.
Do you want to look at these
seemingly respectable huge financial institutions, which are your leading
political contributors as crooks?
BILL MOYERS: TheHill.com website says Goldman Sachs is uniquely
positioned to fight this case, that it spent $18 million over the last decade
lobbying members of Congress, and put millions more in their campaigns. I mean,
you’ve said elsewhere. That’s smart business, right, to invest in the
politicians who are going to be investigating you?
BLACK I would tell you, the Savings & Loan crisis, our phrase was, “The
highest return on assets is always a political contribution.”