But the financial bailout has demonstrated that big Wall Street banks fall firmly within Washington’s regulatory authority, and regulation confers implicit bailout protection. Protected entities should not be using (potentially) public capital to run non-productive gambling tables.
Tourre could see what was coming. In one email in January 2007 he wrote: "More and more leverage in the system. The whole building is about to collapse anytime now… only potential survivor, the fabulous Fab[rice Tourre] .. standing in the middle of all these complex highly leveraged exotic trades
Now the Senate's Permanent Subcommittee on Investigations, led by Carl Levin, Democrat of Michigan, is planning to focus hearings scheduled for next week at least in part on Goldman Sachs's role in the financial disaster. Levin's staff has uncovered new documents "that link certain actions to specif