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It’s all about Goldman


Markets are firmly fixed on what Goldman has to say about its second quarter results at 8:30 am. For those wanting a quick link to conference call info that starts at 11am, they can find it here. Meredith Whitney’s buy recommendation Monday has certainly built in expectations for a bumper quarter.

Blogger Macroman on the whisper number:

A few banks are now suggesting that the whisper number is as high as $5/share, and that anything less than that will disappoint. But given the break back above the old head and shoulders neckline, Macro Man wouldn’t be totally shocked to see the market rally on a $4 print. (Consensus is ostensibly $3.65)

We’ll be live blogging the conference call from here.

Chez Sergey


Earlier today, my Reuters colleague Steve Eder posted about his journey Sunday to the New Jersey mansion of alleged Goldman Sachs trading code thief Sergey Aleynikov. And what a home it is.

It appears Sergey and his family recently moved into a brand spanking new McMansion in North Caldwell, NJ. As I pointed out last week, North Caldwell just happens to the same town that Tony Soprano was supposed to reside in. And the house Sergey bought isn’t much smaller than Tony’s.

Goldman’s “True Blood” moment


matthewgoldstein-Matthew Goldstein is a Reuters columnist. The opinions expressed are his own.-

Goldman Sachs CEO Lloyd Blankfein has an image problem on his hands.

The most ardent critics of his firm are likening it to a blood-sucking vampire, while others simply see the Wall Street investment bank as a greedy and ruthless financial titan. But there is a way for Blankfein to start turning public opinion around, and that involves a quick buyout of ailing mid-market lender CIT Group, which provides financing to some retailers, manufacturers and aviation operators.

While a collapse of New York-based CIT would not pose the kind of systemic risk that last September’s bankruptcy of Lehman Brothers did, the lender’s sudden disappearance from the market would make it even more difficult for some small- and mid-sized American companies to finance their operations.

Meet Jason, a former Sergey colleague


Jason is one of the more than 100 programmers working on the secret sauce code that drives Goldman Sachs’ automated trading systems–also known as high-frequency trading.

How do I know? Well it says so here, on a Goldman promotional web page, where “real” employees for the firm talk about their jobs and their lives.

Goldman should disclose more


Goldman Sachs doesn’t report second-quarter earnings until Tuesday, but some Wall Street analysts aren’t waiting to sing the giant investment firm’s praises.

What’s impressing the analysts the most is Goldman’s ability to again print money like no one else — especially when it comes to trading stocks, bonds, commodities and currencies. Bank of America analyst Guy Moszkowski sounded almost giddy the other day in predicting blowout trading revenues for Goldman, describing the firm as “arguably the most well-respected investment bank.” Moszkowski now expects net trading revenues to top the record $25 billion raked in by Goldman in 2007.

Citadel joins the Sergey fray


Ken Griffin’s Citadel Investment Group just filed a lawsuit against former top trader Misha Malyshev for apparently violating a non-compete agreement he signed when leaving the big Chicago hedge fund earlier this year. Malyshev, of course, is the founder of Teza Technologies, an upstart high-frequency trading hedge fund that hired away alleged Goldman Sachs code-cracker Sergey Aleynikov.

Malyshev and his partners, all former Citadel people, put out a statement on Tuesday saying they suspended Aleynikov after learning of his July 3 arrest. The former Citadel guys also say they were unware of Aleynikov’s alleged theft of Goldman’s proprietary trading computer code.

Is Goldman Sachs evil?


Is Goldman Sachs really a “vampire squid wrapped around the face of humanity”?

That’s the view of journalist Matt Taibbi in a long article in Rolling Stone magazine. Taibbi blames the firm for almost single-handedly orchestrating every investment calamity since the Great Depression. And judging by much of the reaction in the blogosphere, Taibbi’s view has become the accepted meme when talking about Goldman.

Sergey in the land of Tony


So it seems alleged Goldman Sachs code breaker Sergey Aleynikov doesn’t live in the tiny town of Little Falls, NJ as every one thought. It appears Aleynikov and his wife still own a house in Little Falls but it’s up for sale and vacant.

For the moment at least, Aleynikov, who was sprung from federal prison late Monday, is living in a home in North Caldwell, NJ. Now for fans of the TV show the Sopranos, that town should sound familiar because it’s where Tony and his family were supposed to live.

Sergey and Misha


The name of the Chicago firm that hired alleged Goldman code-cracker Sergey Aleynikov is out and it’s a name you’ve probably never heard of before. That’s because Teza Technologies LLC is a new firm–formed in May–by former Citadel Investment Group trader Misha Malyshev.

Malyshev, who had been a top high-frequency trader at Citadel, left the giant hedge fund in February because he felt he was not being sufficiently compensated, says a source familiar with the situation. Malyshev’s group was one of the more profitable last year for Ken Griffin’s operation, which overall had one of its worst years ever in 2008

To catch a rogue quant


The case of a computer programmer accused of stealing the secret codes used in Goldman Sachs’ rapid-fire stock trading platform shows that even a titan of Wall Street can be caught napping at the switch.

Sure, it was Goldman that went to the Federal Bureau of Investigation after discovering that a former employee allegedly downloaded copies of the “source code” for the firm’s stock trading system.