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How Goldman Sachs Helps Clients Manipulate Stock Market

One of Goldman Sachs' business is in issuing analysts reports.  These reports often move the stock market.  Unfortunately, many people take these reports at face value.  Chumps buy-and-sell based on publicly-released reports.Goldman has found a way to cash in on their market-moving reports.  They sell these reports to clients ahead of time:Goldman Sachs Group Inc. research analyst Marc Irizarry's published rating on mutual-fund manager Janus Capital Group Inc. was a lackluster "neutral" in early April 2008. But at an internal meeting that month, the analyst told dozens of Goldman's traders the stock was likely to head higher, company documents show.The next day, research-department employees at Goldman called about 50 favored clients of the big securities firm with the same tip, including hedge-fund companies Citadel Investment Group and SAC Capital Advisors, the documents indicate...continue to full post

Full post as published by Crime & Federalism on August 24, 2009 (boomark / email).