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

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.