Goldman Sachs Will No Longer Huddle

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Despite making it clear that a huddle "is not a forum for sharing stock or sector tips to a select group of clients," Goldman has promised not to do it anymore, and to throw Massachusetts $10 million for its troubles.

Goldman Sachs agreed to pay a $10 million fine and stop holding private meetings of stock analysts and traders known as “huddles” to settle an investigation by Massachusetts’s chief securities regulator. The settlement ends a two-year probe by William Galvin, the secretary of the commonwealth, into New York-based Goldman Sachs’s “Asymmetric Service Initiative,” in which information on analysts’ recommendations was disseminated earlier to favored clients. The company will “permanently discontinue” the practice, Galvin’s office said in a statement today.

The investigation concluded that the dissemination by equity analysts of unpublished short-term trading ideas was "a dishonest and unethical violation of the Massachusetts Uniform Securities Act by putting certain clients at an advantage over others,’’ Galvin’s office said in the statement.

[Bloomberg via BI]

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