GS Goldman Sachs admits trading conflicts ... to some - NYT ($167.82)
In a message to select clients, the head of the bank's fundamental strategies group acknowledges that his unit often provides investment ideas that Goldman has already traded on, or sometimes traded against. He goes on to say the bank may continue to act to its own advantage based on trading ideas after having discussed them with clients. A spokesman says the message is nothing new, as it reflects a disclosure the bank has made for years. The unit is not subject to the same federal rules that equity research departments are.
Reference Link (http://www.nytimes.com/2010/01/13/business/13goldman.html?ref=business

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It only took a few weeks after Long Term Capital Management blew up for me to realize that Goldman Sachs was up to its eyeballs in nefarious activity in the gold market … and that they were a bad lot … which is why I have called them "Hannibal Lecter" ever since…

Goldman E-Mail Message Lays Bare Trading Conflicts

Bill,
Goldman has admitted that it sets its clients up to be patsies for their own trading! Who would want to be a client of these lying, stealing and cheating low-lives? You don’t have to be a conspiracy theorist to believe this…Goldman Sachs has admitted it!

We have often noted in the Midas column how so often the GS call on gold is a contrarian indicator. This is how they earn large bonuses by stitching up their own clients…how disgusting is that?

http://finance.yahoo.com/banking-budgeting/article/108565/goldman-email-message-lays-bare-trading-conflicts?sec=topStories&pos=8&asset=&ccode=

QUOTE

NY Times

For years, Wall Street whispered that Goldman Sachs profited handsomely by trading ahead of -- or even against -- its own clients.

On Tuesday, a Goldman executive made an unusual admission that, in some cases, the rumors were true.

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QUOTE

But Mr. Mazarakis makes clear that when it comes to his unit's advice, the firm comes first. "We may continue to act on trading ideas, and may trade out of any position, based on trading ideas, at any time after we have discussed them with you," he wrote.

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