Goldman Sachs loses software...

The article which can be found here: www.bloomberg.com... relates the following:

At a court appearance July 4 in Manhattan, Assistant U.S. Attorney Joseph Facciponti told a federal judge that Aleynikov’s alleged theft poses a risk to U.S. markets.

From this, it would seem that our beloved Goldman Sachs holds code that is considered a munition.

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said, according to a recording of the hearing made public yesterday. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

Are there really 'backdoors' into the financial markets that allow companies like Goldman Sachs to 'manipulate' the markets to a point that they 'pose a risk'?

If this software is actually able to do what they claim, why did Goldman need a bailout?

This is frustrating and confusing on so many levels....

[edit on 7/7/2009 by Knobee]

well who needs it... they do, the game is so corrupt now... all I can say is thank goodness, because if it wasnt fixed... it would be a lot harder to make money... and this just goes to show you -- THE STOCK MARKET IS RIGGED.... check out www.philsgang.com 3 - 4 PM radio show... and you can see with the gang -- what they are doing -- and profit...

[edit on 7-7-2009 by BornPatriot]

This is because they do not use the software for the good of the stock holders or the investors . It is used for there own gain.

As this comes forth it is not hard to understand why the markets crashed like the did. I myself think that this started with the trade center attacks, and I also think all of this is tied together somehow.

There has just been to many questions that no one has answered and to many items that where (lost) that no one seems to know anything about. And for them to not have backups for paperwork that was to be so important just does not make sense!

And this software? We are to think that they did not have a way to shut it down if it was stolen, that does not make sense either.
With this bit of news I think I am going to be looking for another money crash of some sort to happen now and this be used for the reason that it happened.
I just heard on the news this morning that the job market is a whole lot worse than we have been told. (As we did not already know this.)
And they are starting to say publicly that the commercial land and building market is going to start it's way down now. Well that does not bode well ,and I think we will see that things are way beyond the down side of the market than we have been told.
I really do think we are in a world wide depression and the powers that be are going to start saying that out right now as we see the scramble to blame anyone but them selves.
One news story just amazed me the other day, it stated that the recovery was not working because the people are not going back to work. It was worded to sound like it was the peoples fault this was not getting better just because they are not going to work. Lol where are they to go to work at!

Look at the States that are bankrupt! And the list is growing. Banks are still failing at a fast rate and this is just the start ,not the end. We are starting to see company's close there doors here where I live in the Midwest that we did not think would close. And with huge lay offs now the little stores, the small chain and mom and Pop stores are closing in the towns around us.
Food cost have gone up quite a lot in just the last four months. And I am seeing people start to get really worried as there unemployment runs out , and there is no jobs to be had. And the ones that are around you cannot feed a family much less pay rent and to get to and from work.
We all need to start looking at what is going on and what they are saying as this is as I feel ,is going to be really bad in the coming months.

There are no back doors into the markets via this software. This is goldman's proprietary software used for market making - they have some algorythms set up to calculate timing differences in the market, allowing them to make trades ahead of the curve. It isn't illegal, it isn't a back door of any kind, it is, simply put, software used for trading.

I know people who have come up with similar type models and then, when they learned that their figures were more precise, to the 1000th of a second or whatever, than the software used to make the trades, they rewrote the software for themselves.

They now make fortunes, based solely on their timing differences being faster than most.

If you had this software, could you play the market maker game and beat the rest of the market on transactions? Probably. Does that mean Goldman is doing anything wrong here? Nope. Course of business. If there were back doors and illegal things worked into the software, would goldman have gone to the feds over the stolen code?

Does a drug dealer go to the cops when someone steals his stash?

same concept.