Monday, July 06, 2009

US Attorney Inserts Goldman Sachs' Foot into Goldman's Mouth

Bloomberg is reporting that Assistant U.S. Attorney Joseph Facciponti told a federal judge:
The bank [Goldman Sachs] has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways
Naturally, this is in contrast to Goldman Sachs' usage of the program to manipulate the markets in fair ways.

Facciponti made this statement as part of the criminal complaint filed against Sergey Aleynikov, a former trading platform developer at Goldman Sachs who allegedly (and admittedly, apparently) took a copy of the trading platform software when he left.

Now that Goldman's ability to manipulate the public stock and commodity markets is a matter of record, will there be an investigation into if and when Goldman Sachs has manipulated the markets to their advantage?

Surely GS did not develop the power to manipulate markets just to sit on it, especially given GS' role as the NYSE's Supplemental Liquidity Provider and ownership of more than 50-60% of the NYSE's program trading volume.

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