Regulators Fine Goldman $22M Over Trading Tip Favoritism

Law360, New York (April 12, 2012, 6:21 PM EDT) -- Goldman Sachs Group Inc. agreed Thursday to pay securities regulators $22 million to settle allegations that it lacked adequate controls to prevent its stock analysts from giving early tips to firm traders and preferred clients.

Between 2006 and 2011, Goldman held weekly so-called huddles in which research analysts gave their best stock tips to firm traders, opinions they later shared with a group of favored clients, according to the U.S. Securities and Exchange Commission. The discussions, the SEC contends, raised the risk that firm traders and...
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