One-hundred-plus-hour workweeks are hard under any circumstances. Top it off with a lack of appreciation bordering on contempt from your boss’ boss' boss' bosses for you and what you do in spite of that, and it’s no wonder that Goldman Sachs has become a hotbed of small-scale insider-trading. And that’s before word started trickling down that those driving the bonanza enjoyed by the big banks wouldn’t get to share in the billions, for appearance’s sake.
Well, one Houston-based Goldman analyst allegedly looked at all of the above and decided to make his own bones. Unfortunately for Brian Maguire, he miscalculated on two accounts: First, unlike some others, Goldman did boost its I-banking bonuses pretty significantly (albeit not as significantly as the I-bank boosted—and continues to boost—Goldman). Second, he vastly overestimated his ability to not get caught.
Brian Maguire, formerly an analyst at Goldman, bought shares in two different companies—once last April and once last June—after finding out through internal emails that another analyst was upgrading his recommendation on those firms to “buy” from “neutral,” Finra said…. Finra, Wall Street’s regulatory organization, also said that Mr. Maguire traded securities of issuers that he covered and sold issuers’ securities when he rated them as a “buy” in his research. He also wrote research reports and didn’t disclose that a household member had a financial interest in the issuers’ securities, which is against Finra regulations, the regulator said.
Mr. Maguire also lied to the regulator regarding his trading during testimony, Finra said.
Goldman fired Mr. Maguire in November of last year…. In settling the matter, Mr. Maguire didn’t admit or deny the charges, the regulator said. He did allow Finra to enter its findings, it said.
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