Saturday, 27 August 2016
Last updated 6 hours ago
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.