Ribstein: Friedman and the Geithner Rule

Posted on Monday, May 4, 2009 at 3:11 pm

larry_ribstein.jpgLarry Ribstein: Even if there’s no problem with Friedman’s initial GS share position, the additional purchases are a different matter, particularly since Friedman never told the Fed about those purchases and never asked for a waiver. … Friedman says he bought the shares because they were “cheap.” What does that mean?  In an efficient market, shares are “cheap” only if you know something. What did Friedman know? He bought shares in a bank while he was working for a branch of the agency that was running banking (not to mention the rest of the economy). Could he have known something? See here.