He also said he didn't care who was on the other side of the Abacus deal.
Really? That wasn't one of his rules?
Fortune speculated differently on Blankfein:
- "The start of a probe: Federal, Congressional, or all of the above." Well a criminal probe of the firm is underway; it doesn't get much more serious. A congressional probe and of course an SEC (SEC news) probe are also active.
- A "statement of confidence" from the board or a big investor. Goldman Sachs' top PR guy has maintained that the board fully supports Blankfein. Warren Buffett has also weighed in with enthusiastic support in a high-profile forum.
- "Denials of leaving, thinking of leaving, or knowing the definition of the word 'leave'." On Good Morning America, Blankfein said he had not started thinking about stepping down. For the most part, he's been mum on this issue.
"I personally think it would be very hard, in the end, for the federal government to turn away a state that is having extreme financial difficulties when in effect it honored General Motors and various other entities," he said.
Buffett did fret about potential "contagion" in municipal defaults, where a default by one entity could lead to defaults by others.
Didn't Buffett guarantee billions and billions in municipal debt?
And now Buffett is fretting about municipal contagion?
He used to love contagion!
How about sovereign contagion?
A year ago, Buffett said the economic recovery would be very slow. Now he says its going great guns.
Let's get some sovereign contagion, and then lets see what he says.
Especially if he has to make good on some of his derivative bets!