Goldman 'trading huddles' offer tips to top clients

Goldman Sachs Group Inc (GS.N) holds a weekly meeting of its research analysts where they offer trading ideas that are given to top clients, the Wall Street Journal reported on its website on Sunday.

But the paper cited Steven Strongin, Goldman's stock research chief, as saying these meetings did not give anyone an unfair advantage and the tips did not contradict research notes that carry predictions over a longer term.

Goldman's analysts talk about short-term developments around specific stocks during the meeting, called a "trading huddle," which is also attended by some of the firm's own traders, the Journal reported.

The practice started some two years ago, and since then the Wall Street firm has given ideas on hundreds of stocks, the Journal reported, citing internal Goldman documents.

Goldman could not be reached immediately for comment on Sunday night.

The company told the Journal that its own traders were not allowed to use the information until it had been given to clients.

The Journal also cited Goldman spokesman Edward Canaday as saying that a comment that could lead to changes such as those in earnings estimate, ratings or price target must be sent out to all clients. But Canaday told the Journal that it was rare for comments to reach such levels. link......