UNFAIR

Goldman Tips Off Biggest Clients

Goldman Sachs has been providing its top clients with stock tips that differ from the firm's published reports, reports The Wall Street Journal. Official analyses from the firm frequently rate a stock as neutral, while Goldman's top 50 clients are privately informed that the stock is actually likely to go up in value. The exclusive and profitable information emanates from the "trading huddle," a weekly meeting of the researchers in which the analysts discuss their latest views of individual stocks. A Goldman Sachs spokesman said, "Analysts are expected to discuss events that may have a near-term or short-term impact on a stock's price." He further said that earnings estimates or stock-price targets "must be published and disseminated broadly to all clients."