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This One Has Been Trying To Hide Under The Table
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Nofsdad


Joined: 06 Jul 2003
Posts: 8550
Location: Central CA
Posted: Fri Jul 03, 2009 5:24 pm    Post subject: This One Has Been Trying To Hide Under The Table  

Right on the heels of the revelations about old Foreclosure Phil, comes some new skinny on one of our favorite economy destroyers. We used to watch this one because so many of its alumni have been involved in every aspect of the meltdown that it's almost impossible not to think of this bunch as one of the major engineers of it. Talking about Goldman Sachs, of course. I remember our old "Six Degrees Of Goldman Sachs" game we played here for a while.

Matt Taibbi has a good column on GS over on True Slant this morning that exposes how, among other things, they may have been front-running their customers. Interesting reading for those interested in how the financial sector basically stole the country from under our noses. Check it out here:
Quote:
After watching its thoroughly maladroit handling of several p.r. problems this week, I’m absolutely convinced that Goldman Sachs can be hurt if enough people keep piling on with the pressure. The latest evidence of this is its abject collapse in the face of questions from Zero Hedge about the possibility that it is using the data its takes from users of its website to front-run those same people.

The link to the Zero hedge article is in the blog post but you can check it out here also:
Basically, by using the Goldman 360 web site you agree that your investrment routine can be tracked by Goldman Sachs and the information thus gathered can be used by Goldman-Sachs in any way it sees fit. That changed disclaimer at the top of their web page really says it for them. It's kind of like Sears keeps trying to do with all of those schemes they keep coming up with to get people to let THEM do the same thing.
Quote:
Front-running takes place when a bank or broker-dealer– say, Goldman, Sachs — executes a trade for its own account before filling its customer’s order. Since a large enough trade (executed by institutional investors, for instance) can actually move the price of the security in question, front-running can be a very profitable activity. It’s sort of like fast-food insider trading. It is common knowledge that front-running on Wall Street is rampant, and I interviewed more than one person for my recent Rolling Stone story who accused Goldman of front-running its big clients in all sorts of arenas, from the internet IPO years to the commodities markets.

Anyhow, for anyone interested in following the day to day crimes and/or acts that SHOULD be criminal being perpetrated by these Wall Street slugs, both the True Slant Post and the Zero Hedge post offer a wealth of information on the "F#@k you, I've got mine" crowd and the ways the non-producers make their fortunes by leeching on everyone else.
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dictators_rule


Joined: 08 Jul 2003
Posts: 6606
Posted: Sat Jul 04, 2009 12:37 am    Post subject: walk up the price  

Outstanding Pull . This shows just how inept many of these so called alleged professional brokers & mutual fund managers are . It's pretty sad when a fund or money manager who makes upwards of a million a year has to copy off of someone else's work like 7th grader copying off of each other while taking a test.

More important it shows why many mutual funds in particular tend to have the same holdings and tend to buy & sell at similar times. Even more scary it shows how easily the market can be manipulated because they could use their ' analysis ' of someone's web site usage like a code to buy or sell a stock at a price that will benefit them .

And most importantly by transactiing business before they excute their client's order THE CUSTOMER the reason they are in business gets screwed. I don't know which is worse : screwing the customer or actually manipulating the market & collecting a paycheck for this crap

I think UBS or some else got tagged for this a few years back . The practice should be under more scrutiny along with the fine print .
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Nofsdad


Joined: 06 Jul 2003
Posts: 8550
Location: Central CA
Posted: Sat Jul 04, 2009 1:30 am    Post subject:  

I think we ought to just nuke flipping Wall Street and start this capitalism thing all over again with a few safeguards for the public built into it. These fat bastards could still make their millions, but the economy needs to come first and this hasn't been the case since at LEAST 2000.
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