Last month after reflecting on Geithner's plan for toxic assets I wrote "
But from what we've seen recently with regard to the ethics of Wall St. types, what prevents the bidders at these auctions from conspiring to set prices to minimize the possible loss to them? After all, we are putting up most of the money yet they will get a disproportionately larger share of the profits that may occur."
Here's a quote from FT.com,
This week, John Mack, Morgan Stanley’s chief executive, told staff the bank was considering how to become “one of the firms that can buy these assets and package them where your clients will have access to them”. Goldman and JPMorgan did not comment, but bankers said they were considering buying toxic assets."
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