Goldman's Tips Reward Big Clients

Part of the CFA handbook? Goldman’s Trading Tips Reward Its Biggest Clients Goldman Sachs Group Inc. research analyst Marc Irizarry’s published rating on mutual-fund manager Janus Capital Group Inc. was a lackluster “neutral” in early April 2008. But at an internal meeting that month, the analyst told dozens of Goldman’s traders the stock was likely to head higher, company documents show. The next day, research-department employees at Goldman called about 50 favored clients of the big securities firm with the same tip, including hedge-fund companies Citadel Investment Group and SAC Capital Advisors, the documents indicate. Readers of Mr. Irizarry’s research didn’t find out he was bullish until his written report was issued six days later, after Janus shares had jumped 5.8%. Every week, Goldman analysts offer stock tips at a gathering the firm calls a “trading huddle.” But few of the thousands of clients who receive Goldman’s written research reports ever hear about the recommendations.


QuantJock_MBA Wrote: ------------------------------------------------------- > Incredible! +1

they should put that on the L1 exam next year. I wonder if any charterholder works in that research department

YAWN good morning WSJ yawn

Wow there goes what we all study in the Ethics at those 3 levels.

AntonioY Wrote: ------------------------------------------------------- > they should put that on the L1 exam next year. I > wonder if any charterholder works in that research > department You bet. Being a CFA means nothing. People can have the charter and still violate all the standards, such as treating clients unfairly or using CFA as a noun (which I believe we all do here)

Man makes me want to sue GS for my 5.8% return too.

No big news there. That’s the i-banking model. Goes on at every major firm.

Atrocious. Not shocking at all, sadly.

Haha! I just posted about how terrible Goldman’s research is a week or so ago. The article didn’t go into this level of detail, but from my observations Goldman frequently posts fake “research” upgrades and downgrades that don’t really say anything but nonetheless move the stock because it’s from Goldman. Reading between the lines, it’s clear the notes are meant to influence the price one way or the other after GS’s elite clients get in on the trade. I wasn’t exactly sure what the mechanism for manipulation was, but something was clearly wrong – even Jefferies, by and large, has more useful research than the garbage Goldman puts out. When are people going to start realizing that working at Goldman isn’t really that prestigious? They robbed the tax payer blind, front run their own clients through high frequency trading, and manipulate the market with fake research. What a joke.