Monday, August 24, 2009

SEC to investigate Goldman's huddles

Now that FINRA and the SEC are looking at Goldman, let's give them a little roadmap. But first the news from the WSJ:

Securities regulators are examining weekly meetings at Goldman Sachs Group Inc. in which research analysts give tips to traders and then to big clients, as the Wall Street giant considers disclosing these so-called trading huddles to all its clients.

Examiners at the Financial Industry Regulatory Authority, the industry self-regulatory body known as Finra, and the Securities and Exchange Commission intend to ask Goldman for more information on these weekly get-togethers, people familiar with the matter said.

Check the pay of the analysts who get the highest recomendations from their clients.

That means their information is materially different, or very actionable; othwerwise why the pay? The more recomendtions, the greater the materiality in their "huddles."

And start with GOOG.

After all, it was up only 17 points on the upgrade the other day.

And then check out the early June tout, and the Garmin "huddle."

Who sold into GRMN's good earnings? Didn't Goldman come up with a sell even after they reported, but after they had their huddle?

Just read this link for GOOG. And this link for Garmin.