Goldman Pays $10M To End 'Huddle' Probe

Jun 10 2011 | 11:45am ET

Goldman Sachs will stop offering its favored clients access to its analysts' trading ideas as part of a $10 million settlement with Massachusetts regulators.

The bank pledged to end the "huddles" in which analysts shared their ideas with Goldman traders and some clients, including hedge funds. William Galvin, Massachusetts' secretary of the commonwealth and a man with a taste for battling hedge funds and Wall Street, called the practice "dishonest and unethical."

Goldman did not admit or deny any wrongdoing over its "Asymmetric Service Initiative," which succeeded in boosting its research revenues. But it did promise to "permanently discontinue" the practice.

Goldman did not admit or deny wrongdoing. The firm still faces an investigation by the Financial Industry Regulator Authority.

The probes stem from a 2009 article in The Wall Street Journal describing the huddles.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...