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If the manipulation works, was it really manipulation?
by keketi 9y ago
If the manipulation works, was it really manipulation?
- SEJeff 9y agoThe SEC generally thinks so, and punishes those found guilty with hefty legal fines.
- FLUX-YOU 9y agoPretty sure SEC fines are just cost-of-doing-business territory for the likes of Goldman.
- ethan_g 9y agoNo, this is not the approach at any of the large banks. It's not the fine that kills you. It's when your customers lose your trust and no one trades with you any more. Goldman has a ton of competitors in all their businesses that would pounce on any angle they could use to lure away customers. Committing fraud, etc, is a quick way to lose all your customers. Plus the SEC and other regulators have a lot of political pressure to nail the big banks for any misbehavior. Big banks are paranoid about these things and have huge compliance departments to minimize the chance of anything going wrong with a regulator.
- gruturo 9y agoAbsolutely, and it should be illegal, with harsh punishments which are actually doled out
- ouid 9y agowhat?
- keketi 9y agoIf you signal to the market that a stock is overvalued and the market agrees, where's the manipulation?
- ouid 9y agoIf you signal a thing that you don't believe, as is assumed that GS was doing in the hypothetical you are responding to, then you have behaved deceptively. You are free to argue that GS does believe that Tesla is overvalued, but it is not relevant to an argument which explicitly assumes the opposite.
- 0x00000000 9y ago>the market agrees The what now? Oh, those bots that scrape news articles?
- Sohcahtoa82 9y agoUh...that's basically the definition of manipulation. I'd probably bet my life that GS did a short sell on TSLA before putting out that article.