Bloomberg Comes Down Hard on Goldman

The video linked below is a must-see piece of journalistic skepticism. The duo at Bloomberg News are discussing the recent alleged theft of trading code by a former Goldman (GS) employee Sergey Aleynikov who moved to a hedge fund called Citadel. Their commentary is incredulous. Their tone seems to ask: “Is the Government working for Goldman now?”

Here are a few gems:

• “What is Goldman Sachs doing with this trading code that could manipulate the markets?”
• “And Goldman got on the phone to the Justice Department and got them so fast to nail this guy, it’s almost – you wonder if they have a red line to the government.”
• “It is amazing within one day of Goldman calling they had FBI agents at his driveway doing surveillance. The next day they arrested him…”
• “It’s interesting that the prosecutor from the testimony that I’ve read, it almost sounds as if he’s working at Goldman Sachs.”

More here

Related

Goldman Sachs Loses Grip on Its Doomsday Machine: Jonathan Weil – Bloomberg

Comments

[CautiousInvestor]

Edward, I believe Aleynikov was due to start work at Teza , a Chicago-based fund co-founded by Misha Malyshev, the HFT expert who left Citadel in February.

2009 Jul 12 11:50 AM

[mrtaxx]

Goldman's manipulation of all markets is apparent to the average person but apparently not to those oversee wall street and Congress. GS just admited their stolen software manipulates markets. When Paulsen was Treasury Secretary is was so obvious he was working with congress.

We have banks, hedge funds, mutual funds, market makers etc. that manipulate the markets and yet those that oversee the markets give these institutions special privlidges, advantages and do nothing to help the average investor.

Then we have the situation where Congress helps those who don't pay their bills, their mortgages and commit fraud however law abiding honest individuals have to pay for the problems of those in trouble.

Then there's the situation where Congress bailed out public cos. including banks and now the banks are repaying us with no acess to credit/loans, higher interest rates etc. It was so obvious from the beginning the public companies should have be left alone to fail and the stronger companies would have taken them over.

We have useless people running the counrty that are looking only out for themselves.

2009 Jul 12 11:57 AM

[ms freeh]

to view a partial list of crimes committed by FBI agents over 1500 pages long see
www.forums.signonsandi...

to view a partial list of FBI agents arrested for pedophilia see
www.dallasnews.com/for...

2009 Jul 12 12:21 PM

[Davewmart]

Thanks, Edward.
Tyler had a great post showing where the code was to be found - the code has now been removed.
Looks like GS were straight on to Google.
These are very scary people.
The neo-cons etc may, in my view, have has some pre-warning of possible terrorist attack prior to 9/11, but is suited their agenda to let it go ahead to give cover for the planned attack on Iraq.
I wonder what is planned as cover for attacking Iran.

2009 Jul 12 12:51 PM

[ain't no fortunate son]

Between mid March and early September 2008 the former CEO of Goldman Sachs oversaw and helped orchestrate the complete elimination of two of its largest competitors, Bear and LEH, as well as the total emasculation of another major competitor, MER, via its forced sale to BAC.

And now GS can be considered to flat out own control of the US equity markets through its monopolistic and incestuous position as SLP (supplemental liquidity provider) to the NYSE, and its dominance of NYSE program trading volume, assisted no doubt by its use of a manipulative computer code that no one was ever supposed to find out about.

Former GS personnel have high positions in the FED, NYSE, Treasury, the regulatory agencies and, it can be inferred, the ear of very senior political leaders and staff.

Are these coincidences?

I think not.

Are they illegal?

Perhaps, but who exactly has the stones to call them on it?

2009 Jul 12 02:00 PM

[PaperGains]

I believe most people know, even the feds, that Goldman is among the biggest manipulators on the planet. The feds just look the other way, in fact they act more like minions of GS.

Our markets have become so irrational and hazardous to the average retail investor that if the feds don't do something at some point they'll scare many retail investors away for good.

They eliminate and alter rules to give further advantage to firms like GS and hedge funds (like they needed it). No uptick rule, naked shorting, 13 days to settle short sales (i think that's been changed), and of course no enforcement of the rumors and lies they float daily. They're in cahoots with regulators, politicians, reporters, and probably various sources of 'dark money'. Only GS could admit to owning market manipulating code at no risk to themselves. Not to mention the batphone they apparently have to the FBI.

Just think, back in October when hedge funds turned on their old masters (banks), GS was a beggar like everyone else and came to the feds 'hat in hand'. Now they act like the rule the world again. Goldman Sachs - GangstaS

2009 Jul 12 03:11 PM

[BerkeleyBob]

I don't track GS stock closely, but it seems there was no unusual volume or price decline following the news of the arrest. It's sorta like the story about the counterfeit bonds in Italy--omerta is a notion not unique to the mob, or maybe there isn't much difference between the two...

2009 Jul 12 03:29 PM

[Edward Harrison]

Thanks. I have asked Seeking Alpha to make this correction.


On Jul 12 11:50 AM CautiousInvestor wrote:

> Edward, I believe Aleynikov was due to start work at Teza , a Chicago-based
> fund co-founded by Misha Malyshev, the HFT expert who left Citadel
> in February.

2009 Jul 12 04:14 PM

[dogdazed]

Davewmart:

The Google Code site has NOT been removed. It can be found here:

code.google.com/u/saleyn/

And the original posting of the link to the Sergey Aleynikov Fan Club is here:

www.facebook.com/poste...

2009 Jul 12 08:52 PM

[bynd2009]

It is very amusing to read the accusations that are being heaped upon GS. I don't believe it was to the advantage of GS to see Bear Sterns and Lehman perish. Those two did plenty of screwy trading of the derivatives on their own that brought on their demise. Plus their demise has brought a lot of public scrutiny on how these mega firms operate which GS would very much have liked to avoid. If all these commentators really think GS has the ability to seriously manipulate the markets, they ought to bring their trucks and load up on GS stock which by the way did quite well to recover from 73 to 141 in the last 3 months!! It is helpful to remember that some senior executives at these failed firms (LEH, BSC and MER) were Goldman alumni as well. It would be very interesting to know what exactly was the reason for GS to have that infamous code (wisecrack from the proscutor who was trying to get the bail denied for Mr. S.A. on the grounds that such a code in un-trustworthy hands would result in "unfair manipulation of the markets")

2009 Jul 12 10:07 PM

[prairiedog555]

GS is one of the true life conspiracy theories.
They even admit to having software that can manipulate the market and no one takes notice.

2009 Jul 13 08:02 AM