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Goldman forced to reveal details of trading huddles
27 Aug 2009Goldman Sachs today faced demands to hand over details about its weekly “huddles” between its research analysts and traders.
The investment bank is accused of sharing investment tips from its top analysts with its own traders and leading clients before passing the information to smaller customers.
William Galvin, the chief financial regulator in Massachusetts, has subpoenaed the Wall Street giant demanding information on the huddles. He said he is concerned that the huddles, in which Goldman's research staff give verbal short-term stock tips, disadvantages some clients.
Galvin said: “We have concerns about the research analysts and the efforts under way to use them to secure additional business. Even the term huddles' sounds suspicious.”
The huddles are also being examined by the Financial Industry Regulatory Authority and the Securities Exchange Commission, according to the Wall Street Journal.
Critics claim that by the time the views of Goldman have filtered down to many of its customers the price of the stock has often already moved at a profit for the bank.
Reader views (4)
Wait a minute....since when are research analysts permitted to talk directly to traders? aren't research analysts privy to confidential price-sensitive info to which the traders would not otherwise have access? sounds like a clear case of insider dealing to me....this is chinese walls 101.....
- Abf, London, 27/08/2009 17:06
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I am horrified that anyone thinks the city of London is not occupied by gents with bowler hats,tupperware boxes full of spam sandwiches,and a flask of earl grey..the idea of spivs running the place is nothing of the sort..
- Jonnie Of Brixton, brixton,london,england, 27/08/2009 16:53
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Surprised anyone? Hello is there anyone out there?
- Steve, Brentford, 27/08/2009 16:40
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naaahhhhh, it cannot possibly be true !!!
- Clive, london, 27/08/2009 15:09
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