Goldman Sachs has issued a memo to clients blasting the Wall Street Journal’s article on the “huddles.”
“A ‘huddle’ is not a forum for sharing stock or sector ‘tips,'” Goldman writes in a memo first published by Bess Levin at DealBreaker.
It seems very clear that Goldman clients–the ones not invited to huddles–must have been raising questions about why they were being left out. The most damaging aspect of the article was the possibility that some “most-favoured” clients were getting information or advice that conflicted with what Goldman was telling ordinary clients got. For example, clients coaxed to go long asset backed securities might be peeved if there was some secret Goldman huddle where top clients were told to short.
Goldman is now on the record denying that this occurs.
Here’s the memo that Bess obtained.
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