I don't believe this is legal. Goldman was convicted and fined doing exactly what you describe. The investment banks are not allowed to intentionally deceive th

I don't believe this is legal. Goldman was convicted and fined doing exactly what you describe. The investment banks are not allowed to intentionally deceive their customers. http://www.nytimes.com/2010/07/16/business/16goldman.html?_r=0 http://www.nytimes.com/2010/07/16/business/16goldman.html?_r... However, it is worth noting that after Goldman agreed to pay the fine their stock price rose. This indicates that the stock market believed they got off lightly, so while officially illegal it does appear to be a reasonable business model.