GATA urges SEC, CFTC to probe Goldman

GATA urges SEC, CFTC to probe Goldman trading program

Submitted by cpowell on Tue, 2009-07-07 20:35. Section: Daily Dispatches

4:37p ET Tuesday, July 7, 2009

Dear Friend of GATA and Gold:

GATA today urged the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission to investigate the Goldman Sachs Group Inc. computer trading program that, according to a federal prosecutor, the bank acknowledges can be used to manipulate markets.

GATA's complaint referred to the Bloomberg News story dispatched to you yesterday --

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_6d.tyNe1KQ

-- reporting the arraignment in U.S. District Court in New York of a former Goldman Sachs employee accused of stealing the program. The prosecutor, Assistant U.S. Attorney Joseph Facciponti, was quoted as telling the court: "The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways."

In letters to the SEC and CFTC, GATA wrote: "The assistant U.S. attorney's comment can be construed to suggest Goldman Sachs considers its own manipulation of markets to be fair, while such manipulation by others would be unfair. The court proceeding described in the Bloomberg News story would seem to impugn all markets in which Goldman Sachs trades."

GATA asked each commission "to investigate Goldman Sachs' trading program urgently and report its findings publicly."

The text of GATA's letters is appended.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.