Econintersect: Maria Bartiromo interviewed William K. Black, associate professor of law and economics, University of Missouri Kansas City and Bethany McLean on CNBC Friday 10 August 2012. The topic debated was whether the action of the Justice Department to decline to prosecute Goldman Sachs for fraud for that firm’s role in the mortgage crisis was justified. Black says that the decision was wrong and resulted from lack of investigation, not from lack of criminal activity. McLean’s primary point was that Goldman should not have been prosecuted because no one else was. She argued against “selective prosecution”.
Black responded that prosecution had to start somewhere. Watch the video and form your own conclusions about who behaved well in this exchange and who scored the most valid points.