"Critics claim that via its special software, Goldman is able to detect huge order positions ahead of their execution, and to profit accordingly; in other words, that high-frequency trading is essentially high-tech front-running. ... The hubub over high-frequency trading grew in intensity and virulence when a slightly befuddled prosecutor told the court, in arguing to keep Mr. Alenynikov in the hoosegow rather than allowing him to make bail, the Goldman code in the wrong hands could lead to 'unfair manipulation' of markets. We couldn't help being amused by how ravenously the malapropism was seized upon by horders of cybernauts, unable to resist the obvious, as suggesting that in Goldman's hands it was used for 'fair manipulation'," Alan Abelson (AB) at Barron's, 13 July 2009, link: http://online.barrons.com/article/SB124726746692125697.html.
AB, why are you shilling for Goldman Sachs (GSG)? Doesn't GSG have enough public relations people? I am guilty as charged, concluding any GSG market manipulation is fair in the SDNY US attorney's ofifice's opinion. My guess: the supposedly "befuddled prosecutor", Joseph Facciponti (JF), repeated verbatim what GSG told him. Now JF, roll over, play dead, beg. Good boy. A NY BigLaw partnership awaits you in 2-3 years if you do as you are told and never repeat in public what GSG told you in private. Got it boy? See my 22 July 2009 post: http://skepticaltexascpa.blogspot.com/2009/07/goldmans-schtarkes.html.
1 comment:
Taken right from the Book of Squid Tales, chapter 47... "Blowup -- Frontrunning revealed through aggressive use of US Attorney General against former employee"... ranks up there with chapter 32 "Corzine mangles participation in LTCM bailout" and chapter 35 "Ex GSer Rubin caught trying to twist Fisher's arm over Enron downgrades"...
These chapters seem to come faster and faster.... oh... of course chapter 41... "Blankfein fixes GS bailout through 100 cents on $ payout through AIG, Paulson coordinates from inside Treasury".
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