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Shock! Goldman favours big clients

Susanne Craig uses 2,200 words in today’s Wall Street Journal that state the obvious: Goldman Sachs treats big clients better than small ones.

In any other industry, a company giving favourable treatment to its best customers would stand accused of nothing more than sound business practice.

So it is a measure of the dysfunctional state of Wall Street investment research – not to mention the frenzy of interest in the vampire squid – that Goldman’s activities are considered worthy of such scrutiny.

Here’s the nub of Craig’s case:

Every week, Goldman analysts offer stock tips at a gathering the firm calls a “trading huddle.” But few of the thousands of clients who receive Goldman’s written research reports ever hear about the recommendations.