Goldman Banker Probed for Alleged Leaks to Galleon

Goldman is being treated like a whipping boy and there is seldom anything "nice" being said about the venerable firm.  It is difficult to see how they can defend many of their practices that have been exposed - mistreating some clients to make money for favored clients.  Has Goldman been singled out or are these practices widespread among all the Wall Street firms?

Goldman Banker Probed for Alleged Leaks to Galleon - WSJ.com

BY MICHAEL ROTHFELD AND REED ALBERGOTTI

Investigations are deepening into the potential involvement of Goldman Sachs Group Inc. employees in the high-profile Galleon Group insider-trading ring.

Rumor has it:

U.S. prosecutors and securities regulators are investigating whether a senior Goldman investment banker gave Galleon hedge-fund traders advance word of pending health-care deals...

The banker, whom the people identified as Matthew Korenberg, is a San Francisco-based managing director for Goldman, a senior post.

 Source:

 http://online.wsj.com/article/SB10001424052702304811304577368070832086652.html

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This is a more colorful take on the failure to treat clients equally... in fact playing clients against each other.

Goldman 'Clients': Only Some Are Muppets  -  By Dan Freed


Since "the word 'client' has become Orwellian doublespeak.  
Goldman's leaders talk uniformly about the importance of serving clients, 
but the firm's salespeople know who is a client and who is a mere a counter-party." 

Galleon was a real client. 

The 'muppets' Smith's managing directors were e-mailing each other about 

were fake clients or, as Partnoy put it, "fellow gamblers around a poker table". 

Goldman will ensure that the rules of the game are accurately described - the financial equivalent of checking to be sure there are 52 cards in the deck. 

But it is not obliged to act in a disadvantaged counter-party's best interests, any more than a savvy poker player is obliged to show a poor player his good cards." 

 When in doubt, it is generally safe to assume Goldman is up to no good. 

Source:

http://www.thestreet.com/story/11511323/1/goldman-clients-only-some-are-muppets.html