Goldman Spy Case: Bank Frets Over 'Doomsday Machine' Trading Codes

bloomberg.com:

July 9 (Bloomberg) -- Never let it be said that the Justice Department can't move quickly when it gets a hot tip about an alleged crime at a Wall Street bank. It does help, though, if the party doing the complaining is the bank itself, and not merely an aggrieved customer.

Read the whole story: bloomberg.com

Comments

[martynf]

The truth is its not just goldman every major trader has its own automated trade software its how the system works thats why the system can move so fast, traders set the direction and the software does the volume trades.

automated trading was a bad mistake it means the institutions make more money hence become more greedy and if things go wrong they can't react quickly enough to avoid market upsets.

automated trading software by its nature artificially manipulates the markets without anyones malicious intent.

[JRsNana]

So somebody stole something from the thiefs and they ran to the cops saying they were robbed??? That is TOO funny.

[WIpatriot]

It's enough to make you laugh until you cry.

[petef59]

Ahhhhh! The wonder of the 'free market". Give Goldman Sachs security and human resources a bonus. hahahahahaha

[azdisabledsci]

Boycott wall street. Pull ALL of your money out of the market. If you must invest... get CDs with the best return you can & see if they start paying attention to the common man. You vote with your dollars. Especially on wall street. Don't give them any money to steal & then & only then will they freak out & maybe do things differently.

[LHoney]

Ohhhh, I get it. Now when the market crashes, Goldman can say it was the russians, and then, we will have to go to war...

[notAMoron]

Another financial WMD?

I guess derivatives were like sarin gas, what is this one?

[WIpatriot]

Noo.k.u.lar.

[artgurrl]

Let me get this straight.... Goldman Sachs is filing a lawsuit claiming this guy stole software that can be used to manipulate markets and bring down the entire system? LOL, hmmmm, isn't this what G.S has been doing since the last Great Depression: manipulating markets and recently brought down our economic system? If our lawmakers weren't such chicken S.O.B's, I'd say that this would warrent an all out investigation on Goldman Sachs and why they have this kind of software to begin with and what their involvement was in bringing down the economic system. But since G.S has all our lawmakers paid off and scared to open their mouths, that's not going to happen.

[ErnestineBass]

BINGO!!!

[azdisabledsci]

This should be front page news but it is being buried. Goldman Sachs is the MOST corrupt but also the most influential on Wall street. All major banks are doing the bidding of the federal reserve. They are an illegal cabal who are destroying our country. The money men (especially goldman sachs) are being recycled throught he government like a game of musical chairs. Until the American people start educating themselves & stop being mind controlled by media nothing will change.
Huffpost put this at the top of the home page!

[ErnestineBass]

HEAR! HEAR!

[marxmarv]

Goldman Sachs IS the Federal Reserve in all but name.

[PhilipTaylor]

It is called EL1TE Oligarchy Justice!

Can anyone sleep NOW that we know G0LDMAN had a "D00MSDAY Machine?"

[PhilipTaylor]

Facts:

1. Created Sure Fail Derivatives from Sure Fail TRICK&TRAP Mortgages - Proven Foreclosures and Derivative Failures

2. A1G Credit Default Swaps allowed Casino Bets that above Derivatives would Fail - Proven with massive payoffs to G0LDMAN and others through A1G using taxpayer Money - G0LDMAN got over $13 Billion using method!

3. Misrepresentation in sale of High Risk Garbage as Fake (T-Bill quality) "AAA" rated low risk investments - Proven millions of times but Iceland's Bankruptcy is glaring example!

[luccas]

Phil you left out number 4:

Bid up the oil market by a certain percent, knowing the math, that a certain percentage of increase in the price of oil, distresses a certain number of Americans, via the cost of living. ... In turn, distresses a pre-determined number of subprime mortgage holders. Ding ding ding.

40 percent bump in the cost of oil, during a 3 month period, net increase in cost of living 3 to 8 percent. 80 percent bump, in 6 month nets, 7 to 16 percent bump in cost of living...

Collateral damage in subprime market ?.... hold on, I need to subpoena the guy they are holding over for questioning, to get the exact numbers.

[luccas]

And ... drive up cost of fertilizer in side by side markets with oil. Net: specifically distress food chain (4-8 percent) as cost of transporting food increases with cost of oil and cost of growing the corn and grain, also increases, due to cost of fertilizer. (+ 50 percent cost of fertilizer in 6 month period, add 12 percent cost of doing business passed on, to consumers). Add this to cost of harvesting (+3 percent), due to increases in cost of fuel and transportation of equipment to harvest locations. Add cost of living increases for sub-prime mortgage holders to drive to work.

And viola, more small and medium size businesses coming to large banks to get a another loan so they can meet payroll; due to cost overruns. Plus sub-prime folk start to get more depressed over cost of living or loose their jobs because their boss trying to cut costs, before going to bank to get a new loan.

(Conflict of Interest for large banks, competing with small and medium sized business, by bidding up fundamental cost of business prices, engaging in price wars, against companies in those commodities market, industries, they hold loans for ... hush hush, no Treasury officer speak nor see of this thing called Conflict of Interest, large bank competing against companies they hold loans for, by driving up costs, so those small and medium sized business have to come back to them due to cost overruns, and get another loan.)

[WIpatriot]

C'mon, Philip, you HAD to know....

[Shwazy]

This is easily the most important story in several years, and the only coverage I have seen is scant and brief.

Our media disgusts me. It isn't the bias, it is the abject stupefying incompetence and stupidity. It seems today's journalists don't even know enough to know what is important.

[delta7777]

.
“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.” …
"Did Goldman really tell the government its high-speed, high-volume, algorithmic-trading program can be used to manipulate markets in unfair ways… And shouldn’t Goldman’s bosses be worried this revelation may cause lots of people to start hypothesizing aloud about whether Goldman itself might misuse this program?"

Goldman knows exactly how the program works,
and would never misuse it for anything
other than its intended purpose - market manipulation.
.

[WIpatriot]

I want to know if it has "partial, moderate and stun" mode, or if it's just an "I/O" thing....

[jsgaetano]

So according to what Goldman Sachs has claimed...

A. Financial Weapons of Mass Destuction exist, and...
B. Goldman Sachs possess them.

Sounds to me like the real danger to the global financial system is Goldman Sachs.

[WIpatriot]

Now you have to wonder why EVERYONE doesn't come to that conclusion.

[sabrinaqedesha]

I wonder if this has any connection to the allegations posted at DailyKos about GS getting information on trades right before they happened?

http://market-ticker.denninger.net/archives/1192-FLASH-Goldman-Code-Theft-BOMBSHELL.html

[ErnestineBass]

I'll tell you what I believe...

Goldman Sachs has been manipulating the market using programs such as the one "stolen" by their own former code author, and what's more, they've been doing it with the APPROVAL and AID of the NYSE Board of Directors.

I further believe that Obama's Justice Department will refuse to investigate this matter.

The only defense now left to the "common man" is to get out of the markets, and stay out of the markets.

[marxmarv]

Or get that code and torrent it like a mofo.

[Mauiloa]

I just love this story. It's not much payback for Goldman Sachs "crimes", but it'll have to do.

[jsgaetano]

I love this part-

> The hole in Facciponti’s argument was that the government
> offered no evidence that Aleynikov had tried to disseminate
> the software during the month prior to his arrest, after he
> downloaded it and had left his job at Goldman. That’s the
> main reason the judge, Kevin N. Fox, cited in ruling Aleynikov
> could be released on bail.
>
> “We don’t deal with speculation when we come to court,” Fox
> said. “We deal with facts.”

It's a shame this guy wasn't on the bench at the FISA court... among other places. Judges would do well to follow his example.

[ErnestineBass]

And yet fewer than a dozen of us are here discussing the story of the century.

I give up.

[codergirl]

Unfortunately ErnestineBass, no one at GS will get busted. Justice shows no will in prosecuting anyone on Wall St.

[ErnestineBass]

Sad, isn't it?

Now GS and Morgan Stanley are busy repackaging the "less than prime" mortgage debt on their books into AAA (?) bonds in order to try and sell them to a STILL UNEDUCATED public.

So what happens if, by some miracle, no one buys theseturds?

WE will bail them out AGAIN. Oy.