New Secrecy Rule Lets Goldman Sachs Control Stock Prices Unmolested by Public Scrutiny
According to previous NYSE rules, any company that carried out program trading — essentially, large computer-automated trades worth more than $1 million — had to report the trades to the NYSE, which then made the information publicly available.
But, under new regulations (PDF) published last week, that requirement has been removed.
Taibbi argues that the move is designed to protect investment banks from bloggers who are exposing the companies’ stock market manipulations. Goldman Sachs is singled out because the investment bank’s share of principal NYSE trading has gone from 27 percent at the end of 2008 to fully 50 percent of trades in recent months.
Blogs such as Zero Hedge have been using NYSE data to argue that Goldman Sachs now has an almost unfettered ability to control stock prices.
Taibbi’s article on Goldman Sachs’ long history of involvement in asset bubbles and crashes can be found here.
Read more at www.alternet.org
I thought Mr. Obama was supposed be for a more open government, not more cosy deals. The media never seems to ask him the difficult questions, so only a few people know that the ‘change’ agenda has been abandonned. People would be justified in asking whether it ever existed, other than as a cynical election ploy.
