Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Breaking: FBI Arrest Opens Goldman-Sachs' Pandora's Box

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
FourScore Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 07:13 AM
Original message
Breaking: FBI Arrest Opens Goldman-Sachs' Pandora's Box
Breaking: FBI Arrest Opens Goldman-Sachs' Pandora's Box
by bobswern
Mon Jul 06, 2009 at 02:51:26 AM PDT

Up until about two weeks ago, Matt Taibbi's favorite Goldman Sachs' market observers, the folks over at the Zero Hedge blog http://zerohedge.blogspot.com/, had been continually commenting over the past six-plus months about how Goldman had all but cornered the market on program trading within the NY Stock Exchange. (Program trading is the automated stock trading via computers by firms specially authorized by the NYSE to facilitate same.) Clearly, according to Zero Hedge publisher Tyler Durden, something was up.

A couple of months ago, we also learned through Zero Hedge that Goldman had profited greatly from a sweetheart deal with the federal government concerning a new program instituted by the Feds known as "The Supplemental Liquidity Provider" Program ("SLP"), launched this past Thanksgiving, which was supposed to provide "market liquidity" (i.e.: an ongoing, active market) for selected groups of 500 different NYSE stocks per SLP participant. As Durden pointed out to all who were interested, it certainly appeared to him that Goldman was the only active participant in the program.

In April, we also learned that Goldman-Sachs had reaped the benefits of more $100 million-plus days of profitability than it had in the history of its business! (Yes, you read that correctly, $100 million dollars per day in revenue from its trading business. http://www.bloomberg.com/apps/news?pid=20601087&sid=a7H... )

This past week, according to Durden tonight, things starting going downright stranger than strange when Goldman's name went completely missing from the NYSE's Weekly Program Trading report. The firm that, by far and away (jn most instances accounting for anywhere from third to more than one-half of all program trades throughout Wall Street), had maintained the top position in program trading on Wall Street for practically every week for the past six-plus months, all of the sudden was nowhere in sight.
...This week's NYSE Program Trading report was very odd: not only because program trading hit 48.6% of all NYSE trading, a record high at least since the NYSE keep tabs of this data, and a data point which in itself was startling enough to cause some serious red flags as I jaunt from village to village in what little is left of Europe's bison country, but what was shocking was the disappearance of the #1 mainstay of complete trading domination (i.e., Goldman Sachs) from not just the aforementioned #1 spot, but the entire complete list. In other words: Goldman went from 1st to N/A in one week.

Tonight, thanks to Matthew Goldstein over at Reuters, we now know this: "COLUMN A: A Goldman Trading Scandal?"
http://www.reuters.com/article/fundsFundsNews/idUSN0518...
COLUMN A: A Goldman Trading Scandal?
By Matthew Goldstein

NEW YORK, July 5 (Reuters) - Did someone try to steal Goldman Sachs' secret sauce?

While most in the United States were celebrating the Fourth of July holiday, a Russian immigrant living in New Jersey was being held on federal charges of stealing secret computer trading codes from a major New York-based financial institution. Authorities did not identify the firm, but sources say that institution is none other than Goldman Sachs.

The charges, if proven, are significant because the codes that the accused, Sergey Aleynikov, tried to steal are the secret sauce to Goldman's automated stock and commodities trading business. Federal authorities contend the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major financial institution generate millions of dollars in profits each year.

The platform is one of the things that gives Goldman an advantage over the competition when it comes to the rapid-fire trading of stocks and commodities. Federal authorities say the platform quickly processes rapid developments in the markets and using secret mathematical formulas, allows the firm to make highly-profitable automated trades.

As we also learned from the article, the criminal case "...has the potential to shed a light on the inner workings of an important profit center for Goldman..."
The case against Aleynikov may explain why the New York Stock Exchange moved quickly last week to stop reporting program stock trading for its most active firms. Goldman was often at the top of the chart -- far ahead of its competitors. It's possible Goldman had asked the NYSE to stop reporting the number after it discovered that someone may have infiltrated the proprietary computer codes it uses.

Here's a comment from the criminal complaint against Aleynikov:
"The Financial Institution has devoted substantial resources to developing and maintaining a computer platform that allows the Financial Institution to engage in sophisticated high-speed, and high-volume trades on various stock and commodities markets. Among other things, the platform is capable of quickly obtaining and processing information regarding rapid developments in these markets."

As Zero Hedge and Reuters are quick to point out, the case has the potential to actually pull the curtain aside for the public to take a look at the inner workings of Goldman's trading activities.

Speculation is running rampant throughout the blogosphere tonight regarding matters as diverse as the fairly well-known fact that Goldman is at the heart of the government's Plunge Protection Team http://en.wikipedia.org/wiki/Plunge_Protection_Team, a/k/a the "President's Working Group On Financial Markets," (thus making this a matter of so-called national security, since the "PPT" group, created during the Reagan administration, is supposed to step in and prevent our markets from crashing), to the possibility that Goldman could have easily been "frontrunning" the rest of the market due to the implementation of their exceptionally fast proprietary code, identifying others' market-making trades and strategies, then acting upon them for Goldman's own benefit, executing in-house trades before the third-parties' trades were even concluded.

Whatever happens as a byproduct of these latest, breaking events, as Robert Scheer told us awhile back over at HuffPo, it's to the point where we've become either numb, or resigned, or both, to the extent of corruption that occurs there http://www.huffingtonpost.com/robert-scheer/cashing-in-... . Then again, Matt Taibbi just informed us last week that the folks over at Goldman are no less than responsible for every market bubble that's occurred on Wall Street since the 1920's. (See: "The Great American Bubble Machine." http://correntewire.com/great_american_bubble_machine_0 )

Get your tinfoil hats on and go checkout ZeroHedge's reader comments on this story, tonight http://zerohedge.blogspot.com/2009/07/is-case-of-quant-... . They're fascinating, running the gamut from one conspiratorial option ('...Aleynikov is a patsy...') to another ('...the proprietary source code for the government's Plunge Protection Team will be available for the public to view at any moment...').

They don't even make movies with scripts that are this good.

http://www.dailykos.com/storyonly/2009/7/6/750420/-Brea...
Printer Friendly | Permalink |  | Top
Buttercup McToots Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 07:16 AM
Response to Original message
1. Pay attention, grasshoppers...
Pandora's Box
:popcorn:
Printer Friendly | Permalink |  | Top
 
Lugnut Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 10:50 AM
Response to Reply #1
3. Pass the popcorn, please.
This should be good.
Printer Friendly | Permalink |  | Top
 
DaLittle Kitty Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 11:39 PM
Response to Reply #3
48. Program Trading Is Patently CORRUPT ANd Gives WS/Goldman Unfair Advantage Should Be OUTLAWED!
This is how average "investor" i.e., SUCKER gets raped on Wall Street. STOP ALL COMPUTERIZED PROGRAM TRADES> Each Trasde Should have a SINGLE HUMAN BEHIND IT!
Printer Friendly | Permalink |  | Top
 
DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 11:24 AM
Response to Reply #1
6. Good morning!

We've missed you in the daily SMW threads. Hope all is well.
Printer Friendly | Permalink |  | Top
 
Buttercup McToots Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 04:27 PM
Response to Reply #6
20. Hi Dem...
How ye being?
Things is bad...laid off...hubby furloughed...bills piling up...
mmm what else?...I'm the same as everyone else, I guess...
Hope all is well with you?
B.
Printer Friendly | Permalink |  | Top
 
DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 04:40 PM
Response to Reply #20
21. Oh, sorry to hear that

Hope you have family nearby, and good neighbors where we're all helping each other and bartering. Sooner or later, we will be going that way too. This economy is not so good.
Printer Friendly | Permalink |  | Top
 
RandomThoughts Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 07:24 AM
Response to Original message
2. Once capitalism returns to investment with modest gains
And not skimming from pension funds and smaller investors with a rigged system, things will improve. All the speculation does nothing for the economy and just scrapes wealth out of the system for a few people.

I think someone suggested increased capital gains taxes on short term trades, and other regulations.

We need an economic system not a rigged casino.

(Maybe that's what Steven King spoke about when he said the bad people were in Vegas. I never thought it was a geographic comment. More of a comment about building on sand, or building on a rock like a Boulder.)
Printer Friendly | Permalink |  | Top
 
WCGreen Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 01:04 AM
Response to Reply #2
39. Short term trades are treated as regular income capped at 28%, I believe
The capital gains tax doesn't kick in until one year out...
Printer Friendly | Permalink |  | Top
 
RandomThoughts Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 05:03 AM
Response to Reply #39
43. One year is still short term gain, but thanks for pointing that out n/t
Printer Friendly | Permalink |  | Top
 
nc4bo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 11:11 AM
Response to Original message
4. The guts of the fraud about to be revealed. JHC!
Had to sit down and read then reread to get a solid grip on what all of this could mean.

Oh shit.
Printer Friendly | Permalink |  | Top
 
earth mom Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 11:20 AM
Response to Original message
5. The banksters are all a bunch of corrupt mo fos. Most of us knew this last summer when they ripped
Edited on Mon Jul-06-09 11:21 AM by earth mom
us all off with their fucking bailout.

The reality is that NONE of them will ever do time.

But it's all good-at least Martha went to jail. :eyes:
Printer Friendly | Permalink |  | Top
 
ensho Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 11:26 AM
Response to Original message
7. kick
nt
Printer Friendly | Permalink |  | Top
 
bluesmail Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:31 PM
Response to Original message
8. Sounds like GS is using the stolen PROMIS software
or a version of it. Where it knows what a 'person' is going to do before that 'person' even knows it. Corporate espionage, another reason for the FISA mess in the senate.
Printer Friendly | Permalink |  | Top
 
Grinchie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 04:47 PM
Response to Reply #8
22. You mean they didn't read the fine print buried in the Patriot Act?
Regarding the Governments right to examine every dollar invested or held because it may have come from Terrorists?

Printer Friendly | Permalink |  | Top
 
Bankhead_ATL Donating Member (248 posts) Send PM | Profile | Ignore Mon Jul-06-09 02:33 PM
Response to Original message
9. good read but you still get a Colin Powell pic.........
Printer Friendly | Permalink |  | Top
 
nadinbrzezinski Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:38 PM
Response to Original message
10. Oh my, and this gets better and better
where did I put my script writing program?

WOW
Printer Friendly | Permalink |  | Top
 
redqueen Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:38 PM
Response to Original message
11. K&R
Printer Friendly | Permalink |  | Top
 
jpak Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:46 PM
Response to Original message
12. Calling AG Holder, Calling AG Holder - financial terrorists loose on Wall Street
throw the motherfuckers in jail - and reimburse taxpayers

PDQ
Printer Friendly | Permalink |  | Top
 
McCamy Taylor Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:55 PM
Response to Original message
13. Any chance G-S is hooked in with AT&T's domestic spying? That would allow them
to eavesdrop on most to all stock sales as well as info about various stocks. The article mentions that they have a lightening fast reaction when others start trading. An AT&T/Goldman Sachs connection would be great if you want to scoop the competition.
Printer Friendly | Permalink |  | Top
 
girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 03:25 PM
Response to Reply #13
17. I don't know about that, but I do know..
They have an odd TOS agreement on their trading portal which has led some to speculate that they may be frontrunning their own clients.

http://zerohedge.blogspot.com/2009/07/is-goldman-legall...
Printer Friendly | Permalink |  | Top
 
Lucky Luciano Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:49 PM
Response to Reply #17
34. If they are frontrunning clients, they should be nailed to the fucking wall...
but if they simply have superior code that has nanosecond latencies, then they are just superior to the rest and more power to them.
Printer Friendly | Permalink |  | Top
 
AngryAmish Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:57 PM
Response to Original message
14. This is very interesting
1) Stealing GS trading code is simple corporate espionage - it has to be a crime and if this guy did grab it he should go to jail.

BUT

2) What GS was doing is even more sinister. They were making up 25% of the NYSE volume (with our government's blessing) via automatic trades. They were front-running the market since their computer were faster and closest (physically) to the NYSE computers. This tiny latency in the markets is doing the exact same thing as knowing the winning horse via telegraph as was the central scam in "The Sting".
Printer Friendly | Permalink |  | Top
 
bluesmail Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 02:59 PM
Response to Original message
15. K&R!
Printer Friendly | Permalink |  | Top
 
hedgehog Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 03:00 PM
Response to Original message
16. Wait, what? I thought the purpose of the FBI was to infiltrate
peace groups. WHen did it start looking into real crime?
Printer Friendly | Permalink |  | Top
 
dccrossman Donating Member (530 posts) Send PM | Profile | Ignore Mon Jul-06-09 04:17 PM
Response to Reply #16
18. ROFL @ Hedgehog
You made my day!

:rofl:
Printer Friendly | Permalink |  | Top
 
loudsue Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 04:21 PM
Response to Reply #16
19. They only arrest & prosecute people who want peace. People who wreck lives all over
the world, and throw millions out of their homes....well, they get a pass.

Does this make anyone else as angry as it makes me? I'm ready to storm DC over this, and demand executions in the town square.
Printer Friendly | Permalink |  | Top
 
Grinchie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 04:59 PM
Response to Reply #19
23. Thats because they enable Monsanto, Cargill, Titan and Haliburton
By providing incredibly cheap money, most often conjured out of thin air, then run through the laundry of Joe Lunchbox's wages, who is then nickled and dimed to death with the illusion that the shiny piece of crap he just spent money on is somehow better than the slightly less shiny piece of crap that wore out due to planned obsolescence.

This fraud is the only way these overbloated ponzi schemes can stay afloat, and the government looks the other way because they know the consequences of the scheme failing.

The Government is in the situation similiar to the builders of a nuclear reactor. They were sold this wonderful system that will create energy that will be too cheap to meter, but after they invest hundreds of billions of dollars in it, they find that it runs the risk of murdering millions upon millions of people. But they already spent craploads of money, so they ignore it and push ahead with the hope that the inevitable accident never happens, instead of biting the bullet and shutting down the faulty systems, admitting the loss, and redesigning the system to account for the problem revealed by their premature efforts.

The current economic system is virtually identical to the Nuclear Reactor scenario. They cannot admit the complete utter failure and toxicity of it because too much is invested in it, and they don't have the stomach to face the music. It's just as toxic..



Printer Friendly | Permalink |  | Top
 
Wapsie B Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 05:26 PM
Response to Reply #23
24. That's a great analogy.
I wish they covered this stuff in Econ. 101.
Printer Friendly | Permalink |  | Top
 
Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 05:54 PM
Response to Reply #24
25. It Didn't Exist Back Then
Welcome to the 21st century.
Printer Friendly | Permalink |  | Top
 
glitch Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 09:17 PM
Response to Reply #23
36. They prop it up and keep hoping someone will come along with a tech fix to save their asses.
Admitting such a massive mistake is political suicide, they'd much rather risk the suffering of others.
Printer Friendly | Permalink |  | Top
 
Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 02:23 AM
Response to Reply #23
40. Not to mention the anger of the sheeple if they ever learned how screwed they've
been for how long. The whole scam is based on faith & credit, if the sheeple ever realized what they've staked their entire lives on, they would probably get off the the couch and do something, maybe.


Printer Friendly | Permalink |  | Top
 
RandomThoughts Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 05:09 AM
Response to Reply #19
44. If corruption is overthrown by those methods
The over throwers end up just taking over the same system. That is why I think the leaders that did it through justice and peace established better governments.

However things like the American revolution were based on Justice, since the arguments were laid out in documents, and then the leaders did not make themselves emperors, so their are a variety of mixing of methods in history.

I think most people today think of the problem as government, when corrupt corporate rule is also a source of claimed power, and from that comes much of the legislation through corruption. Many people that go after government forget some key components.

If you run a crooked politician out of office, sometimes the people that bought him off will try and get another crooked person to just take his position.

This is where the source of the corruption must be found, then arguments should be made to decide if their claimed power is just, then if it is shown unjust they should be removed from any ability to claim power by the tools of justice.
Printer Friendly | Permalink |  | Top
 
WillyT Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 06:30 PM
Response to Original message
26. Huge K & R !!!
:bounce:

:kick:
Printer Friendly | Permalink |  | Top
 
sasquatch Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 06:46 PM
Response to Original message
27. Will the expert woodworkers please began the construction of the guillotines
KTHXBAI
:patriot:
Printer Friendly | Permalink |  | Top
 
Grinchie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:25 PM
Response to Reply #27
29. Better start ordering the Tools from Germany
Like the Mortice Chisels and Tee Handled Augers that aren't manufactured here in America anymore.

If you're luck , you can still find them at yard or estate sales... :-)
Printer Friendly | Permalink |  | Top
 
Mopar151 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 10:08 PM
Response to Reply #27
37. The recycling industry has you covered
Subject: We're way ahead of that
Message:




Available for inspection under power, working every day. These are not the elegant French machines of days gone by, but rugged, modern monsters ready to shear up obsolete trash for reprocessing!

Printer Friendly | Permalink |  | Top
 
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 07:44 PM
Response to Original message
28. '...the proprietary source code for the government's Plunge Protection Team
will be available for the public to view at any moment...'

:popcorn:
Printer Friendly | Permalink |  | Top
 
Grinchie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:26 PM
Response to Reply #28
30. Copyleft Bernie Maddoff Inc.
Printer Friendly | Permalink |  | Top
 
xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:41 PM
Response to Original message
31. recommend
Printer Friendly | Permalink |  | Top
 
Lucky Luciano Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:46 PM
Response to Original message
32. The first comment in one of the links is very good and worth a look.
I have reposted it below. I am also a junior quant trader starting my job next week (after being laid off from a less technical trading role) focusing on VIX options and other equity/equity derivs strategies. I say if Goldman's code is that good, then kmroe power to them - I am super jealous!

The comment:



Thoughts from a software engineer and high frequency alg trader (self employed - first time poster):

1) Unless someone who works at GS can shed light on the system controls in place - such as whether there is physical access to any USB ports on machines, or CD-RW drivers, it does not strike me that his method of stealing the source code was particularly bad. Yes - he got caught, but if he didn't have physical access to write the data to any form of physical storage he could smuggle out of the building, encrypting the data and uploading it via HTTPS (FTP was blocked according to the report) seems like a reasonable route. I find it odd only that GS just recently started logging large HTTPS transfers (both in that this seems like an obvious avenue of theft, as well as the coincidental nature of the timing).

2) He knew enough to delete his .bash_history file, but not enough about any audit trail left behind. If the folks at GS are sneaky (well, we know that they are sneaky in some respects), they could have modified their own version of bash so that a history file was stashed someplace not accessible to the end user, and not disclosed via the HISTFILE variable. I've done this once before - it doesn't take more than a few hours of programming work. If GS was not that smart and they were using a stock version of bash - well, then he just doesn't know as much as he needed to in order to get away with this.

3) 34MB is a hell of a lot of source code. Just for the back of envelope, lets say that the compression (he probably created a tar file and then gzip'ed it) and the encryption offset each other (encrypted data inflates in size), and that the size of the data in question was the compressed and then encrypted tar ball... I just looked at some of my own code, and if my lines of software are about as long as the average GS line of software (and if my compression + encryption cancel out size estimate is right - probably way way too conservative), then we are looking at 850K lines of code (and potentially much more depending on the encryption re-inflation rate). Either there were other things in there besides source code (object code, libraries already compiled or executables), or we are talking about a massive massive massive theft. 850K lines of software if it were that much, could constitute the entire mother-load. This would be far from just a single trading strategy (again if it were just source code). It's hard to imagine that GS would keep all of their software projects together in such a way that 1 software engineer could get at the other projects he was not working on, but it is certainly possible. I think a more likely scenario is that he got some non-source code files in there as well.

4) There is nothing sinister about placing oneself at the closest point to the trading venues as one can. Literally anyone with enough money to pay for the rental space can do so (it aint cheap). There are brokers that allow one to place machines in their rack space co-located with the exchanges. So, nothing sinister about that (plenty in general about GS perhaps, but nothing about their co-location), and at the same time - someone with good co-location space and their software could eat part of their lunch.

5) I don't think anyone else stealing GS code would be able to in 1 month understood it well enough to integrate with their own setup and get it working. Even if it were only a few thousand lines of software, it is likely dense enough to require months of work to understand it, and to then adapt it. Off the shelf it would not likely work. Each setup is different enough to require some reengineering. Different vendors are used to get different data feeds, different types of data encapsulation, different servers, server tuning would need to be done. I don't think even with an all hands on board approach (which would not be likely given the risk of being caught) could another firm get the software by June 1 and be running it effectively in July.

6) Suppose that I am wronge about #5 - it would not explain a lack of volume in the last week+. Rather, if someone had already deployed their stolen GS trading software, one would expect to see 2 entities trying to create the same trades at roughly the same time, such that trade volume would not change, but the quote data coming from the various exchanges would actually increase above and beyond baseline (since now there would be 2 firms trying to place the same trades, and assuming they were equally fast - they would place their limit orders at the same time, hit the exchange at the same time, and then we'd see double updates to the bids and asks on the various ECNs as one of the 2 just edged out the other by a microsecond. In practice, we have seen not only a drop in trading volume, but a drop in the volume of bid/ask updates hitting the various ECNs.

7) If anything, I would guess that GS would stop their trading so that they could see if anyone was placing the same trades that they would if they were not cowering in the back office. Were I in their shoes, I would run the software to output to a log the trades that I would have wanted to place, and I then would look for a high correlation of someone else placing them. This would be easier done by not actually placing the trades, since if GS assumes that they are generally among the fastest, their systems running would potentially interfere with their ability to find someone else trying to run their strategies.
Printer Friendly | Permalink |  | Top
 
abumbyanyothername Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:49 PM
Response to Original message
33. The wheels are coming off.
What will the post finance society look like?
Printer Friendly | Permalink |  | Top
 
Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-06-09 08:53 PM
Response to Original message
35. The mind is probably roaming
Perhaps the disappearance of GS from the ranks of program traders is due not only to someone walking off with the code, but they also left some code behind...Nice thought anyway. :bounce:
Printer Friendly | Permalink |  | Top
 
ocd liberal Donating Member (333 posts) Send PM | Profile | Ignore Tue Jul-07-09 12:56 AM
Response to Original message
38. Tyler Durden from Fight Club?
"Clearly, according to Zero Hedge publisher Tyler Durden, something was up."

I looked at Zero Hedge's profile of Tyler Durden and IS a picture of the character Brad Pitt played in Fight Club. Are we being punked?
Printer Friendly | Permalink |  | Top
 
katanalori Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 02:47 AM
Response to Reply #38
41. NO, not being punked.
"Tyler" chooses to be anonymous and uses the character to do so.
Printer Friendly | Permalink |  | Top
 
mackerel Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 02:58 AM
Response to Reply #41
42. Come on now people...aren't you glad we bailed
them out!?!
Printer Friendly | Permalink |  | Top
 
masuki bance Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 05:14 AM
Response to Original message
45. Is there something wrong with using this type of software? Why? nt
Printer Friendly | Permalink |  | Top
 
fasttense Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 06:47 AM
Response to Original message
46. Seems to me when one crook can cost the company millions? Billions?
Then there is something wrong with the system. If one company like Goldman can have such a large impact on trading, then we really don't have anything near resembling a free market.
Printer Friendly | Permalink |  | Top
 
Hubert Flottz Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-07-09 07:13 AM
Response to Original message
47. "Don't touch, Bernie Bernie Bernie!"
Bernie was just a small timer. I'll bet there are some movers and shakers on Wall Street that might owe the justice department more than a hundred and thirty years, if the FBI was ever to turn over each and every stone.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Dec 25th 2014, 05:13 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC