Goldman Caught Manipulating Brent/WTI Spread: Penalty: $40,340

Goldman Caught Manipulating Brent/WTI Spread: Penalty: $40,340

www.zerohedge.com

For all those who believed that it was only JP Morgan who is manipulating the Brent-WTI spread, we regretfully have to inform you that the squid is once again front and center, having now been caught red-handed by none other than the ICE exchange, aka the home of Brent trading. From a just disclosed complaint: "On 28 January 2011 the Exchange’s monitoring detected six notable “price spikes” in the April11 Brent/WTI spread, between 14:26 hours and 14:31 hours UK time.

(visit the link for the full news article)

These were investigated and found to be the result of a limit order and several large market orders placed in quick succession by a GSF trader...In relation to the events described above, the Exchange alleged that GSF had breached the following Rule: "It shall be an offence for a trader or Member to engage in disorderly trading whether by high or low ticking, aggressive bidding or offering, or otherwise." The Exchange recommended to the Committee that summary disciplinary proceedings be commenced in regard to the above mentioned allegations. The Committee subsequently considered the matter in accordance with Summary Enforcement Rule E.7...The Committee considered the behaviour of GSF and its client to be a clear case of disorderly trading, in that the distorting price impact of the placement of such large orders in close proximity was not considered." But don't worry: the ICE naturally had to sugar coat its findings: "Having examined the instant messenger logs of the communication between the GSF trader and their client, the Committee found no evidence of intentional manipulation of the market; nevertheless it considered the breach to be of a serious nature." Well, thank god that all market manipulation occurs via perpetually recorded instant messaging. It would be inconceivable that Goldman and its "client" may have found a different way to hatch plans to defraud investors than one which involves on the record messages.. Simply inconceivable... And preposterous.

Bottom line: the fine for Goldman Sachs: £25,000

Libya, Greece, you name it, Goldman Sachs is there. They are over their heads in scandals and all kind of sinister practices. Our governments turn a blind eye and these criminals continue to destroy our countries. The sad thing is, we're all sitting by idly until it's too late and we're at the point of no return (Greece). I am afraid that much of the violence that is likely to follow in the years to come, will mainly concentrate on the governments while the bankers will get away with it. The masses don't seem to understand who truly is responsible for this, even though our governments play a huge role too.

A fine of $40,000 for market manipulation... The impudence with which the crimes are committed and allowed to happen is shocking.

www.zerohedge.com
(visit the link for the full news article)

Is that all? he probably gets that in interest each day! He should have all his assets frozen!

reply to post by Mdv2


Do you have the penalty of a regular Joe Schmo manipulating the market with vital information?? What would a "regular person" get hit with if they were caught?? I would have to believe more than a $40,000 fine!!!

When you download mp3s, you can get in much more trouble...

Lol....seriously....why would Goldman give a crap about this small fine anyway?

This is an investment in their eyes....sort of like when they throw a few thousand or million at most of our politicians...

It's an investment to them.