Goldman Sachs Admits Program Stolen From Them Can Be Used To Manipulate Markets…hmmm Is That Where My Tarp Money Went?

In an admission of absolutely epic proportions Goldman Sachs is quoted as claiming that the source code stolen from its program trading unit could be used by an unscrupulous firm to manipulate the market…SAY WHAT!?!?! There has been some really weird stuff happening on Wall Street lately and Goldman has been in the middle of all of it. Markets closing late?!?! Goldman trading volume not being reported due to some failure of NYSE software…makes you all warm and fuzzy about the competence of NYSE eh? Btw Goldman’s trading volume was driven by its program trading unit. And btw Goldman usually sits at the top of the list of firms in volume. And now we find out that an unscrupulous firm could manipulate the market…but NOT GOLDMAN SACHS? Are they kidding?

And so it develops. From the GATA press release:

Dear Friend of GATA and Gold:

GATA today urged the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission to investigate the Goldman Sachs Group Inc. computer trading program that, according to a federal prosecutor, the bank acknowledges can be used to manipulate markets.

GATA’s complaint referred to the Bloomberg News story dispatched to you yesterday –

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_6d.tyNe1KQ)

– reporting the arraignment in U.S. District Court in New York of a former Goldman Sachs employee accused of stealing the program. The prosecutor, Assistant U.S. Attorney Joseph Facciponti, was quoted as telling the court:

"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."

In letters to the SEC and CFTC, GATA wrote: "The assistant U.S. attorney’s comment can be construed to suggest Goldman Sachs considers its own manipulation of markets to be fair, while such manipulation by others would be unfair. The court proceeding described in the Bloomberg News story would seem to impugn all markets in which Goldman Sachs trades." Zero Hedge: Gold Anti Trust Action Committee Urges SEC, CFTC To Probe Goldman Trading Program

HELLO WHERE IS THE STATE CONTROLLED MEDIA? WHY ISN’T THIS BLOCKBUSTER OF A STORY BEING RELATED TO THE AMERICAN PUBLIC???

Here is a copy of the pre-trial testimony where the admission that the software Goldman produced can manipulate the markets. The testimony is being given by Mr. Facciponte of the US Attorney’s office Southern District of New York. We are being asked to believe that while the software Goldman produced CAN manipulate the markets Goldman is too scrupulous…hmm. Hat Tip the remarkable Zero Hedge Blog.