Sunday, July 5, 2009



"Did someone try to steal Goldman Sachs’ secret sauce?

While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution—that sources say is none other than Goldman Sachs.

The allegations, if true, are big news because the codes the accused man, Sergey Aleynikov, tried to steal is the secret code to unlocking Goldman’s automated stocks and commodities trading businesses. Federal authorities allege the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major “financial institution” generate millions of dollars in profits each year...

The case against Aleynikov may explain why the New York Stock Exchange moved quickly in the past week to stop reporting program stock trading for its most active firms. Goldman often was at the top of the chart–far ahead of its competitors.

On the week ending June 19, Goldman was ranked first on the NYSE program trading list. But on the week of June 22, Goldman mysteriously didn’t appear on the list of the top 15 firms at all. It simply vanished without any explanation. Then the NYSE stopped reporting the numbers. The Zerohedge blog was all over this controversy a week ago.

And now Tyler Durden of ZeroHedge has come in with his own excellent analysis of this strange, strange criminal case. I highly recommend reading it.

It’s possible Goldman asked the NYSE to stop reporting the number after it discovered that someone may have infiltrated the proprietary computer codes it uses..."

Last week, the NYSE engaged in a data cover-up, changing the way the proprietary data was reported, obstensibly to cover this story up on Goldman's behalf.

As ZH reported:

Certainly this seems like a material piece of information: given that program trading accounted for 49% of all NYSE trading last week, and Goldman as recently as one week ago represented about 60% of all principal program trading, will this be called an issue threatening the National Security of the United States. Shouldn't all market participants be aware that there is some rogue code in cyberspace that can be abused by the highest bidder, who very likely will not be interested in proving the efficient market hypothesis? What will happened when said bidder goes about trying to front run none other than the "Financial Institution" [GS]?

"GoldmanGate" is just starting!

And they, once again, are selling the public a bridge of ......!

1 comment:

bs99 said...

GS is a parasite. They have skimmed from pension funds and foreigners so hank paulson can have a yacht and rob the treasury. china and russia are more patriotic to the usa than are the usa big banks and gubbermint. I hope they die a hideous death.