Goldman Sachs = crooks

[bik0]

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

The rumor was strongest around oil and other commodity futures, as well as mortgage securities, during the 2008 financial crisis.

And on Tuesday, a Goldman executive made an unusual admission: Sometimes the rumors are true.

In an e-mail message to select clients, The New York Times wrote, Thomas Mazarakis, the head of Goldman's fundamental strategies group, acknowledged that his unit often provides investment ideas that the company has already traded on.

Sometimes Goldman has even bet against particular instruments that the group has recommended.

"We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you," he wrote.

The statement comes as the company faces growing criticism over its role in the financial crisis, and it is a rare acknowledgment of Goldman's conflicts with certain clients.

http://www.nytimes.com/2010/01/13/business/13goldman.html

[Sebastian Doyle]

1. Not just crooks, TREASONOUS crooks.

Operating deliberately against the best interests of this country and the American people.

[corpseratemedia]

2. What's going to be the damn tipping point for these criminals?

[FiveGoodMen]

3. Nothing unless some of them start mysteriously turning up dead.

[Vinnie From Indy]

4. Any fund manager or pension adminsitrator or institutional investor

that doesn't pull their funds from Goldman-Sachs should lose their position. It is inconceivable to me to be a large client at Goldman and not wonder whether my interests had been protected or whether I was the victim of a scam. This is the question ALL clients of Goldman should be asking themselves right now.