Goldman to pay $22 million to settle “huddles” case
(Reuters) – Goldman Sachs (GS.N) agreed to pay $22 million to settle civil charges arising from company procedures that created the risk select clients would receive market-sensitive information, such as changes to Goldman’s recommendation lists and its ratings of stocks.
The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority said the charges stemmed from Goldman’s weekly “huddles,” at which the bank encouraged its stock research analysts to “provide their best trading ideas to firm traders.”
Those traders then passed tips to a select group of top clients, the SEC said, but the agency’s charges did not include allegations of insider trading.
The SEC said that Goldman policy, for example, required broad distribution of market-sensitive statements from analysts about the companies they covered. (Continue reading)