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Ex-Goldman Worker 'Snatched Trade Codes'
SkyNews ^ | July 7, 2009 | Unknown

Posted on 07/07/2009 11:35:45 AM PDT by Stayfree

Officials accused Aleynikov of stealing codes that are used for sophisticated automated stock and commodities trading.

(Excerpt) Read more at news.sky.com ...


TOPICS: Business/Economy
KEYWORDS: computer; goldman; manipulation; trading
If Goldman's computer software could be used to manipulate stocks and commodities, the Department of Justice and the Securities & Exchange Commission should immediately investigate Goldman's use of that software and its trading profits from such activity because Goldman probably has been illegally manipulating stocks and commodities with that software. Goldman has a distinct reputation for ALWAYS being on the right side of every trade!!
1 posted on 07/07/2009 11:35:46 AM PDT by Stayfree
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To: Stayfree

And when did this happen. Would it have been sometime around mid-September last year? What’s the rest of this story?


2 posted on 07/07/2009 11:38:13 AM PDT by Free America52 (I just want it to be the way it always has been.)
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To: Free America52
“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.” Rapid-Fire Trading About 28 percent of the shares traded in the U.S. during the fourth quarter were handled by automated brokerages using algorithms to generate rapid-fire trading strategies, according to estimates from NYSE Euronext, the world’s largest operator of stock exchanges. That’s up from 17 percent a year earlier, and almost three times larger than the portion of volume generated by individual investors, according to NYSE Euronext. Goldman Sachs stands to lose if its trading technology leaks out, Facciponti told the judge. “Once it is out there, anybody will be able to use this, and their market share will be adversely affected,” he said. Michael DuVally, a spokesman for Goldman in New York, declined to comment. A person close to the bank said yesterday that the alleged theft wouldn’t hurt its business or customers. 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. ‘Preposterous’ Goldman Sachs’s computerized systems have helped the firm extract more revenue from trading equities than its Wall Street competitors. The current and former chief executives of the New York Stock Exchange, Duncan Niederauer and John Thain, both worked at the bank before joining the stock exchange. The equities business produced $2 billion of revenue for Goldman in the first three months of this year, down 20 percent from the first quarter of 2008, the company reported in April. Second-quarter results are scheduled to be reported next week. By comparison, Morgan Stanley made $900 million in revenue from equities in the first quarter; JPMorgan Chase & Co. generated $1.8 billion; and Citigroup Inc. reaped $1.9 billion, according to company reports.
3 posted on 07/07/2009 11:50:10 AM PDT by Stayfree (REWARD FOR OBAMA'S BIRTH CERTIFICATE.COM)
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To: Stayfree

Russian mafia is adept at using hackers to crack financial systems to blackmail financial companies out of millions. Wouldn’t be surprised if this guy was their mole into GS to grab the “keys to the kingdom.”


4 posted on 07/07/2009 11:55:43 AM PDT by anymouse (God didn't write this sitcom we call life, he's just the critic.)
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To: Stayfree

Is this guy a RUSSIAN??? Maybe that’s why Obama is so off in Moscow.


5 posted on 07/07/2009 11:56:44 AM PDT by Ann Archy (Abortion....the Human Sacrifice to the god of Convenience.)
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To: Stayfree

Global diversity under foreign multiculturalism is our strength. Goldman gets back what it puts out.


6 posted on 07/07/2009 11:58:37 AM PDT by SaraJohnson
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To: Stayfree

“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,”

It’s ok for Goldman Sachs to own this program to manipulate the markets but not somebody else.


7 posted on 07/07/2009 12:31:56 PM PDT by cowtowney
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To: Stayfree
"Rapid-Fire Computer Trading" should be illegal, exactly as computerized voting. The possibilities for manipulation and fraud are endless, as is the supply of experienced criminals willing to invest the time to exploit it.

Think about it. Who engages in it? It ceases to be "investing" and crosses the line into manipulation.
Exactly the same reason why casinos will not allow expert counters to play blackjack at their tables.

8 posted on 07/07/2009 12:38:35 PM PDT by Publius6961 (Change is not a plan; Hope is not a strategy.)
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To: Stayfree

SEC Complaint Reference Bump :-(


9 posted on 07/08/2009 9:09:48 AM PDT by Tunehead54 (Nothing funny here ;-)
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