WALL STREET JOURNAL FINDS GOLDMAN SACHS GIVING TOP CLIENTS AND TRADERS DIFFERENT ADVICE THAN AVERAGE CUSTOMERS
The paper, citing company documents, said few of the firm's clients who receive written stock research from Goldman ever hear or know about the views that emerge from the meetings.
The report cited research on asset manager Janus Capital Group Inc. as an example of the practice. It said Goldman issued a report on Janus on April 1, 2008, rating the stock neutral, and a day later at one of the weekly meetings told a group of Goldman traders that the stock was likely to go higher.
Following that meeting, the paper reported that research department employees called about 50 favored clients, and passed on the information about Janus from the meeting.
Goldman's clients who receive written research did not find out about the bullish update until six days after the call to top clients, according to the report.