Regulatory Arbitrage.
Robert Waldmann
An amazing figure (just click the link) via Don The Libertarian Democratvia Felix Salmon all fascinated by Goldman Sachs.
If a bank repackages mortgages and doesn’t sell the securities it *still* can reduce required capital. Wow.
Goldman Sachs has been criticized a lot recently, but they do seem to have strong support among Burkean Libertarian Democrats.