Goldman Sachs has admitted that it's trading software allows it to manipulate the market:
July 9 (Bloomberg) -- Never let it be said that the Justice Department can’t move quickly when it gets a hot tip about an alleged crime at a Wall Street bank. It does help, though, if the party doing the complaining is the bank itself, and not merely an aggrieved customer.
Another plus is if the bank tells the feds the security of the U.S. financial markets is at stake. This brings us to the strange tale of Goldman Sachs Group Inc. and Sergey Aleynikov.
Aleynikov, 39, is the former Goldman computer programmer who was arrested on theft charges July 3 as he stepped off a flight at Liberty International Airport in Newark, New Jersey. That was two days after Goldman told the government he had stolen its secret, rapid-fire, stock- and commodities-trading software in early June during his last week as a Goldman employee. Prosecutors say Aleynikov uploaded the program code to an unidentified Web site server in Germany.
It wasn’t just Goldman that faced imminent harm if Aleynikov were to be released, Assistant U.S. Attorney Joseph Facciponti told a federal magistrate judge at his July 4 bail hearing in New York. The 34-year-old prosecutor also dropped this bombshell: “The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways.”
Read that last line again: "There is a danger that somebody who knew how to use this program could use it to manipulate the market in unfair ways."
Goldman Sachs knows how to use the program. Indeed, it the program was stolen from Goldman Sachs. Can anyone now see what conclusion follows from those premises.
Will the federal prosecutor who tripped over himself to protect Goldman Sachs, instead investigate Goldman Sachs?
The tone of the Bloomberg article is evidence of a perspective change. Bloomberg is pro-business and pro-Wall Street. The first line takes a direct swipe at the United States Government: "Never let it be said that the Justice Department can’t move quickly when it gets a hot tip about an alleged crime at a Wall Street bank."
The article implies something we all know: Federal prosecutors will not investigate market-based crimes unless a large bank is a victim. Bernie Madoff cheated people out of billions. The SEC ignored evidence that Madoff was running a Ponzi Scheme. Who cares about the people? Even Bloomberg seems to have had enough of the Department of Justice's three wise monkeys.
Will the United States Depart of Justice, as the SEC did with Madoff, ignore Goldman Sach's admission that Goldman possesses a program that allows it to "manipulate market in unfair ways"?
If unemployment continues to rise, there might be lynchings on Wall Street. As it is now, I'm almost ready to lead the mobs.
Here is a video report: