Posted on 07/10/2009 6:09:09 AM PDT by jmaroneps37
Is this the same “greedy” Wall Street Democrats ALWAYS condemn, but NOW want us to trust with Cap and Trade?
Last Friday federal agents arrested a former Goldman Sachs employee charging him with improper access to trading information.
Why has this information been buried?
Sergey Aleynikov was taken into custody two days after Goldman Sachs informed the government he had stolen the firm’s rapid-fire, stock- and commodities-trading software in early June. Investigation reveals Aleynikov sent the program to a German web site. So far this sounds like mundane industrial espionage of little meaning for the rest of us; but there might be much more to this story.
Can we trust Wall Street with a program like this?
At Aleynikov’s bail hearing a US Attorney made a bombshell comment, “….there is a danger that somebody who knew how to use this program could use it to manipulate [stock] markets in unfair ways.”
Even with no further comment from the government this remark raises serious questions: If a person not authorized to use the program could “manipulate markets in unfair ways” why couldn’t/wouldn’t Goldman Sachs manipulate the markets for its own gain?
If this program can do these things, has Goldman Sachs been playing the markets with “tomorrow’s newspaper” under its arm?
Will the fact that Goldman Sachs has been a longtime cash cow for the Democrats (going back to the days when Jon Corzine was in charge) mean there’ll be no wider investigation of the possibilities this presents?
If so where does that leave us, the small honest investor?
The implication of the possibilities of such a program, seem to be that once again the little guys are falling prey to another big Wall Street firm.
Is this the Wall Street we are supposed to trust with “Cap and Trade?”
(Excerpt) Read more at collinsreport.net ...
“If so where does that leave us, the small honest investor?”
Well, this investor is pulling her cash OUT of the market this week and buying more silver. ;)
Silver & gold are in their usual ‘Summer Doldrums’ so now is the time to buy if you’ve got the cash and inclination to sit on it for a while longer. :)
What’s laughable here is that Goldman Sucks is acting like an indignant victim. And the FBI jumps on the case and solves it in a day.
“Someone stole our market manipulating program! We demand the US govt get it back”
An entire cabal of Madoffs, they are.
Have you seen GS stocks lately.300% gain since 2008 lows?
This is nonsense! You need to be able to trade in the Billions a day to move the market. GS can do that, but not many others could.
1. How likely is it that an attorney understands computer programs and stock trading?
2. You might get an unfair advantage trading against GS, since you know their strategy, but if only GS had the program they would have an advantage against no one.
“….there is a danger that somebody who knew how to use this program could use it to manipulate [stock] markets in unfair ways.”
Even with no further comment from the government this remark raises serious questions: If a person not authorized to use the program could “manipulate markets in unfair ways” why couldn’t/wouldn’t Goldman Sachs manipulate the markets for its own gain?
If this program can do these things, has Goldman Sachs been playing the markets with “tomorrow’s newspaper” under its arm?
We can't have that.
We all know manipulating the market is the sole province of Goldman Sachs.
There are lots of entities with $Billions with an interest in manipulating the US market. The Saudis. The Russians. The Chinese. Tom Clancy had a book where he explored this scenario ("Debt of Honor").
Not just Goldman! Look at the Russian Mafia!
“...Security expert Bruce Schneier told The New York Times Goldman made all the right moves in this case, but if Russian gangsters got the Aleynikov code from Germany then Goldman’s trading secrets may be blown anyway.
Since the arrest happened Friday the question needs to be asked. Assuming the Sergei Aleynikov arrested at Newark is the same Sergei Aleynikov who tried to steal Wheel of Fortune with a mobbed-up partner, did President Obama bring this up with President Putin in their meetings earlier today?
If Goldman Sachs’ trading secrets are now in the hands of Russian gangsters, who benefits? How much cooperation will Russia offer in cracking the case, and what might that mean for bilateral relations?...”
“and inclination to sit on it for a while longer. :)”
Actually that’s not even a requirement, gold and silver are highly liquid. :-)
You can move the market in any given stock with numbers in the sub thousands. With the broader indexes it can be done with the futures and tracking stocks...
On the topic, the case of GS and this software, the issue (roughly) is the possibility that Goldman utilized the software to “front run” the market and profit from trading based on the information passing through the clearing system.
How about Soros. He knows.
That was my understanding as well. I guess the guy they arrested held a patent for communicating over the public telephone systems (which also carry computer network data) in such a way, that he could transmit his data faster than those who didn’t use his method. I guess GS also owns the archipelago exchange, over which about 70% of NYSE transactions occur, and are able to “intercept” large orders, and using their software, they were able to purchase the stock available at the going price, while they “held” a large order off, long enough to complete their transaction and then they would turn around and offer the stock they had just purchased to the person that had a large order pending for a slightly higher price. Basically, skimming money off of the top of large purchases.
True. I just meant to ‘sit on it’ until the prices go up again this fall. If they do. I’ve been sitting on my stash for 10 years now and it’s FINALLY paying off. :)
Look to the usual suspects: India, Russia, and China all recently stated they ‘doubt’ the dominance of the U.S. Dollar.
“You need to be able to trade in the Billions a day to move the market.”
Not really. Jim Cramer did it by simply stating things on his show just to prove he could do it.
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