Tuesday, Oct 13th

Last update12:08:14 AM GMT

You are here News Economy Goldman fined $10 million and to stop trading 'huddles'

Goldman fined $10 million and to stop trading 'huddles'

E-mail Print PDF

Goldman Sachs finedGoldman Sachs Group Inc agreed on Thursday to pay a $10 million fine and stop giving favored clients trading ideas developed at internal gatherings known as "trading huddles."

The accord with Massachusetts' securities regulator resolves charges that Goldman analysts gave "priority" clients, including hedge funds that trade rapidly, short-term trading tips that might be at odds with the bank's published research, violating state law.

"The real issue is fairness in the marketplace," William Galvin, Massachusetts' Secretary of the Commonwealth, said in an interview. "Certain customers were preferenced over other customers and we regard that as unethical behavior. This is a recurring theme in the securities industry, where some customers get special inside information and others do not."

Stephen Cohen, a Goldman spokesman said the bank is pleased to settle the matter, which includes no admission of fraud.

According to a consent order, Goldman research analysts and traders began holding huddles in 2006 in which they discussed topics, including short-term trading ideas.

Analysts were expected to follow "Rules of the Road" that included a ban on "selective disclosure" of pending changes in stock ratings, earnings forecasts and share price targets.

TVNL Comment: Lunch money fine and a slap on the wrist for committing major fraud.  No surprise.


Most Recent Related Stories...

Nobel economics winner wades into US debates

Angus DeatonAngus Deaton, who has been awarded the Nobel economics prize, is not afraid to wade into...

Major banks investigated for collusion in precious metals market

Banks investigated for precious metalsThe Swiss competition watchdog has launched an investigation into possible collusion in the precious metals market...

Oil and gas boomtown gone bust: Gonzales tries to cope

boomtown gone badOnly a year ago, with oil trading near $100 a barrel, residents of this proud and...

GE to move turbine jobs to Europe, China due to EXIM bank closure

GE sends jobs to Europe, ChinaGeneral Electric Co (GE.N) said on Tuesday it will move 500 U.S. power turbine manufacturing jobs...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!