Rick S.

Wall Street Breakfast: Must-Know News

I am surprised that all the investment banks aren't maintaining superstratispheric leverage and not just Goldman, in light of the fact that the Federal Reserve has shown it will bail anybody out that's big enough. Talk about moral hazard.

The new leverage limiting factor, if there is any, might just be the size you can puff up to and stay within the limits of the Fed's ability to bail out rather than its willingness to do so.