What Is Up with Wall Street? the Goldman Standard and Shades of Gray.

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What is Up With Wall Street? The Goldman Standard and shades of Gray.

What is Up With Wall Street? The Goldman Standard and shades of Gray.

The problem to be investigated is the Goldman standard and shades of gray. Goldman’s strategy affected Wall Street business. His standard was toes-to-the-line. He had many toes-to-the-line activities, in other words, shades of gray activities in his business life. Did these activities and issues follow the business ethics? Did Goldman offer the best interest to his customers? Did Goldman lie to his clients? Was Goldman supposed to pay the penalties for what he did? All these questions based on the business ethics.

1. Go back through the case and make a list of each action or practice that could be called a gray area.

(1) Goldman was using his own clients to make money. He created an investment company and bought 90 percent of the shares in that company with his own money. The public did not know that Goldman purchased the shares and driven the price up. Then Goldman continued to buy shares from the secondary market and so on (Jennings, 2012, p. 73).

(2) Goldman was involved in laddering, which was an agreement between Goldman and his best clients for the allocation of a certain portion of the IPO at a preestablished price. However, those clients also had to agree to buy a certain amount of shares later during the IPO rollout at price $10 to $15 higher (Jennings, 2012, p. 75).

(3) Goldman held trading huddles. The conclusions of the huddles were shared with Goldman’s traders and a selected few of Goldman’s thousands of clients. Those conclusions were often different from the analysts’ reports and recommendations that were issued to the public. Goldman ‘s huddle involved analysts form his fundamental strategies group rather than equity research analysts who were subject to SEC rules (Jennings, 2012, p. 78).

(4) Goldman involved in the auction-rate markets. His clients hold $40 billion in securities there...