While Mr. Munger thinks Goldman did nothing illegal, the firm was engaged in "socially undesirable" activities, he said in an interview after the SEC lawsuit was filed.
"They were very competitive in maximizing profits in a competitive industry that was permitted to operate like a gambling casino," Mr. Munger said. "The whole damn industry lost its moral moorings."
He added that he believes Goldman is "more prudent and ethical" than other big Wall Street banks.
Munger generally comes down quite a bit more harshly on Wall Street's behavior than Buffett does.