Warren Buffett and Goldman Sachs

Having read Liar's Poker by Michael Lewis back in the 80's and having learned of the deceit rife in the financial markets, I was surprised at the time when Warren Buffett took the leadership role at Solomon Brothers.  This was partially offset by his actions to correct the bad behavior of the employees there.

Then in 2009 he once again took a large stake in the even less reputable Goldman Sachs (GS).  All this was justified by the enormous returns he, or rather Berkshire Hathaway, was promised by the investment.

However, when the SEC recently filed a fraud suit against GS, the only response from the Buffett camp was a defense of GS.  Legal guilt or innocence has little to do with the reality.  When a person violates the law, they have violated the law, regardless of whether there is a court ruling to that effect.  A person is dead when they are dead, not when the death certificate is issued.

Buffett's action or lack of action damages his reputation.  He now falls into the same class as GS.