Multi-Industry Chief Compliance and Ethics Officers

Regulators Probe Goldman Analyst Communications

  • 1.  Regulators Probe Goldman Analyst Communications

    Posted 05-10-2011 02:13 PM
    This message has been cross posted to the following eGroups: Investment Management Forum and Chief Compliance Ethics Officer Network .
    (Reuters) - Massachusetts securities regulators may bring charges against Goldman Sachs Group Inc for improperly passing along analysts' tips to top clients.

    The Massachusetts Securities Division is weighing administrative proceedings against the bank over communications among its analysts, sales staff and clients, according to Goldman's quarterly filing with U.S. regulators. The U.S. Securities and Exchange Commission, Financial Industry Regulatory Authority and others are investigating similar matters, Goldman said.

    The investment bank said it is cooperating with the probes but did not provide more detail.

    Massachusetts Secretary of State William Galvin, the state's top financial regulator, has said in the past that he was investigating Goldman and has subpoenaed information about how the investment bank might have passed along short-term trading tips of its analysts to top clients.

    In 2009, Galvin said he was concerned the analysts might pass along their best ideas improperly during weekly meetings called "huddles."

    Galvin's office declined to comment on Tuesday, except to confirm the accuracy of Goldman's statements in its securities filing.

    In 2003 Galvin was among a group of regulators who negotiated a $1.4 billion settlement over research practices of big Wall Street firms including Goldman.



    Connect with your peers:
    Join SCCE's Social Media Groups

    Eric Newman, Esq.
    Social Media Manager

    Default Blank