Working weeks of more than a hundred hours are by no means difficult. Top it off with a lack of appreciation bordering on disdain your boss’s bosses for what you do anyway, and it’s no wonder Goldman Sachs has become a hotbed of small-scale insider trading. And that was before the news came that those who drive the big banks’ bonanza weren’t going to partake in the billions for the sake of looks.
Well, a Houston-based Goldman analyst reportedly looked at all of the above and decided to make his own bones. Unfortunately for Brian Maguire, he miscalculated in two accounts: First, unlike some others, Goldman has increased its I-Banking bonuses quite significantly (though not as much as I-Bank Goldman has increased – and continues to increase). Second, he grossly overestimated his ability to avoid getting caught.
Brian Maguire, a former Goldman analyst, bought stakes in two different companies – one last April and one last June – after finding through internal email that another analyst’s recommendation for those companies was “neutral” , Finra, to “buy” improved said…. Wall Street regulator Finra also said that Mr. Maguire was trading in securities from issuers that he had covered and sold securities from issuers when he classified them as a “buy” in his investigation. He also wrote research reports and did not disclose that a household member had a financial interest in the issuers’ securities in violation of Finra’s regulations, the regulator said.
Mr Maguire also lied to regulators about his trade during the testimony, Finra said.
Goldman fired Mr. Maguire last November…. In settling the matter, Mr Maguire neither admitted nor denied the charges, the regulator said. He allowed Finra to enter his results, it said.
Regulator Bars Former Goldman Insider Trading Analyst [WSJ]