Goldman Sachs May Lose Millions From Ex-Worker's Theft Of Trading Codes

Bloomberg News:

July 7 (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.

Read the whole story: Bloomberg News

Comments

[carolontheweb]

Don't believe the headlines - the same people who take down stories on McKinney - post this headline to give the impression that Goldman Sachs may get its comeuppance.

It's all about smoke and mirrors guys.... smoke and mirrors.

YOU and me are here to be manipulated.

[VivaZapata]

First good news about the Jersey City Jerkoffs in a long time.

[watchTVgetSTUPID]

Fetch my weeping Vase. I must weep one tear to show my empathy for Goldman Sachs who immitated me as Rome burned. And I must weep one tear from my other eye to show my remorse for myself who will not have GS to kick around anymore.

[Haditup2here]

It couldn't happen to a more nicer and people conscious investment firm. . .

[TJCole]

LOL..!

Stealing from thieves, is that still a crime...?

[LHoney]

Only if they are successful wealthy thieves...

[desertman]

Goldman isn’t the only group out there using high-frequency program trading. If Goldman’s code could manipulate the market, couldn’t other codes do the same? Of course they could. And here’s what the SEC had to say about it:

The Securities and Exchange Commission believes institutional money managers are “sophisticated” enough to trade against the machines without further regulation.

“We don’t want to curtail liquidity,” said Gene Gohlke, associate director for the SEC. Gohlke said it’s up to the managers themselves to make sure other traders aren’t manipulating their models.

The SEC, tasked with preventing market manipulation from destroying the retail investor, is turning a blind eye to what’s happening in the market in the name of “liquidity”.

What bastards.

During the entire market fall the SEC has given the appearance of actually caring about you and me. They banned short selling and are on the verge of reinstating the uptick rule.
But that’s not where the money is. The money is in program trading. Program trading alone could move the markets far more easily than a few short sales.

Of course, the members of the SEC don’t have you and I buying them box seats to the Yankees games or bottles of Dom just for being “nice”. The loyalty of the SEC has already been bought by those with money – institutions like Government Sachs.

[VS007]

The following statement is poignant.
It means anyone who knows the code can manipulate the markets. Goldman Sachs has the code for years and they are implicitly admitting to manipulating the markets for so long?

“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,” Facciponti said, according to a recording of the hearing made public yesterday.

[joncushman]

Goldman Sachs has a monopoly on information. Monopolies are illegal in the United States. We need to see the break up of all corporations that are considered "too big to fail". Competition will only benefit.

[pastpartisan]

We are borrowing the stimulus money. More stimulus is equivlent to throwing gasoline on the fire. We can't possible pay the debt back... legitemately. The government will use inflation to cheapen the debt. Unfortuneatly, this will hurt the poor, the working class, and the elderly on fixed income. Reckless government spending is not a Liberal value. http://www.alexandria.lib.va.us/link/redir.pxe?www.iamned.com

Stimulus is a joke of a concept; it doesn't end up with real economic growth in the long term. Even the New Deal failed to increase private investment. It wasn't until 1941 that domestic private investment reached 1929 levels. The fact that the first stimulus has failed to stop the bleeding yet isn't surprising. Our government deficit for the year which is over 20% of GDP (when the omnibus bill, first stimulus, bailouts, and on-budget deficit are summed) is unsustainable and something's gotta give, whether it be the lenders or the interest rates.

hat tip to http://www.alexandria.lib.va.us/link/redir.pxe?www.iamned.com

[jsgaetano]

Stealing from criminals- it's a victimless crime.

[cozen]

What about GS theft of American people?

[delta7777]

.
boo...hoo..
where is my handkerchief to wipe away the tears??..
please hand me my violin.
.

[Alvin4NY]

same feeling here.....

[butterfliesblossom]

And goldman sachs is surprised by this unethical behavior? I thought that was the criteria for a trader was to be unscrupulous.

[BigMur2009]

Not to worry. They will just get the taxpayers to bail them out. They will also come up with a new derivative to play the "stolen software market."

[Haditup2here]

Unfortunately, you might just be right. . . . . If that happens, someone may need to bring on a sale of pitch forks and flame torches in order to storm the treasury.

[Brett1981]

“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,” Facciponti said, according to a recording of the hearing made public yesterday. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

Someone could use the program to manipulate the market in unfair ways? And what was GS doing with it?