Goldman Sacs May Lose Program Trading Monopoly...

[lib2DaBone]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_6d.tyNe1KQ

July 6 (Bloomberg) -- Goldman Sachs Group Inc. may lose its investment in a proprietary trading code and millions of dollars from increased competition if software allegedly stolen by a former employee gets into the wrong hands, a prosecutor said.

The bank 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,”

‘Preposterous’

The prosecutor added, “Once it is out there, anybody will be able to use this, and their market share will be adversely affected.”

The proprietary code lets the firm do “sophisticated, high- speed and high-volume trades on various stock and commodities markets,” prosecutors said in court papers. The trades generate “many millions of dollars” each year.
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Oh Noes! You mean someone (other than Goldman) using this software could manipulate the market and skim Millions?

:rofl:

Goldman sachs would never do that! Better get this software back into the right hands where it is safe.... Eric Holder and the Justice Department will get right on this....

[Teaser]

1. Goldman would never use its special magic software to cheat.

never never never.

[Ikonoklast]

3. Goldman Sachs? Cheat? Lie? Steal?

[Tansy_Gold]

2. Eric Cantor or Eric Holder? n/t

[lib2DaBone]

4. Sorry..meant Holder.

[DeschutesRiver]

5. Two related articles suggesting this may be bigger

I read Karl's ticker at TF; then read the link he included to the DailyKos diary that alerted him to this. I am not esp. financially literate; from a quick reading, if true, I'd say this is bad beyond measure. There is so much more at Zero Hedge that it makes me head hurt (entries from July 5th and on); sorry can't provide the link at the moment because my dial up is nasty tonight.

But I don't understand it fully - if anyone reads this and thinks there could be merit in it, and understands the rammifications, could you explain it in a nutshell version to me? Thanks, because I don't want to fret about tinfoil, but given the arrest, the possible code theft, the potential for misuse, I am not thinking happy thoughts.


http://market-ticker.org/archives/1192-FLASH-Goldman-Code-Theft-BOMBSHELL.html
http://www.dailykos.com/story/2009/7/7/750786/-Incredibly-Shrinking-Liquidity-as-Goldman-Flushed-Quant-Trading