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Goldman Sachs Responds To Zero Hedge

Tyler Durden's picture




It seems quite a few individuals noticed our post attempting to justify some very peculiar language in not just a certain Goldman Sachs Internet disclaimer, but also the strange wording prominently featured in critical GS-client agreements. One happened to be Goldman Sachs itself. We take this opportunity to present the response by Goldman Sachs' spokesman Ed Canaday:

Dear Mr Durbin:

This is in response to your recent blog about our web site disclaimer. It is quite usual for websites to have disclaimers that refer to the monitoring of site usage. Most web sites, including yours we noticed, track usage by their visitors. This is primarily used for marketing and to help inform decision about enhancing content.

Your suggestion that we monitor our web site to facilitate front-running is untrue and offensive.

Sincerely

Ed Canaday
Vice President
Goldman, Sachs & Co.

____________________
Ed Canaday
Office: xxx-xxx-xxxx
Cell: xxx-xxx-xxxx

We are happy to have caught the attention of Mr. Canaday. We believe this is the start of a great ongoing dialog. In that vein, Marla has replied to Mr. Canaday and Goldman Sachs, attempting to elaborate on some of the point that Ed did not touch upon. I present it below and am looking forward for Goldman's forthcoming reponse:

Dear Mr. Canady:

Thanks for your quick reply.

For your future reference, the correct spelling for "Tyler" is "Tyler Durden." (A re-viewing of "Fight Club" might be in order, but I know Goldman VPs probably rarely have time for such luxuries).

Obviously, we want to make sure we have our facts correct so I am pleased to see your email. Perhaps you can lay to rest some questions we have for the record:

1. Indeed, data use disclaimers are a common feature on most websites. Still, I think you will agree that where usage patterns are so directly linked with potential investment activity and customer intentions it is a bit unusual not to have a more explicit description of the kind of use Goldman intends here. This is particularly so where customer attitudes are concerned, and appearances are important. "Internal business purposes" is a bit vague in this respect, don't you find? This seems unlike Goldman, usually a firm known for very careful attention to detail. Why is a more specific description of such purposes not included? I would think that easier than explaining the matter repeatedly to random bloggers (and customers).

2. I notice that you have not taken the opportunity to address similar disclaimer language in the form contracts used by Goldman and Spear, Leeds and Kellogg. Was this omission intentional or an oversight? (For your reference you can find the language we are curious about here: http://www.zerohedge.com/node/12083). "You acknowledge that we may monitor your use of the Services for our own purposes (and not for your benefit). We may use the resulting information for internal business purposes or in accordance with the rules of any applicable regulatory or self-regulatory body and in compliance with applicable law and regulation."

Not to be a stickler, but the drafting here seems quite careless.
Note the differing terms between the website disclaimer "...the resultant information may be used by GS for its internal business purposes OR in accordance with the rules of any applicable regulatory or self-regulatory organization...." (emphasis added) and the form disclaimer "...we may use the resulting information for internal business purposes or in accordance with the rules of any applicable regulatory or self-regulatory body AND in compliance with applicable law and regulation...." (emphasis added).

As a reformed legal professional myself, this seems a bit sloppy to me. Can you comment on the language and in particular why a more explicit definition of "internal business purposes" is not included?

3. I also notice that you do not specifically address our question:
"...has Goldman has ever actually used 360 submitted information in the decision making process of its prop trading desk?" Could you give us a response there? Perhaps you might augment that to include the decision making process of any Goldman investment decisions rather than just the prop desk and all information Goldman collects about 360 users.

And lastly, while we have your attention, we were hoping you could make a statement for Zero Hedge and its readers on the long discussed topic on our pages regarding Goldman Sachs' effective monopolization of Principal Program Trading in the New York Stock Exchange. In other venues you have attributed this domination solely to Goldman's selection as the one and only SLP currently used by the NYSE. Would you care to elaborate how that fits in with the NYSE's upcoming changes to their DPTR (http://www.zerohedge.com/node/11769)
specifically as pertaining to J and K account type indicators. Was Goldman in any way consulted in the making of this decision by the NYSE? Did Goldman have any direct communication with the SEC on this issue?

Thanks for your help with these matters. As an aside, if there is a contact at Goldman we can routinely direct these questions to that might be helpful for both of us going forward. I look forward to hearing from you.

Best Regards,

"Marla Singer"

Of course, as soon as we receive additional disclosure on this matter, we will post it promptly.




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Thu, 07/02/2009 - 12:24 | Link to Comment mentat
mentat's picture

I expect *crickets* in response.

Thu, 07/02/2009 - 12:29 | Link to Comment wiskeyrunner
wiskeyrunner's picture

Keep at em, don't back off. Beat them from the inside out from the inside out.

Thu, 07/02/2009 - 12:34 | Link to Comment andy55
andy55's picture

Very nice work, MS! Let's hope for the best in that we get a detailed and forthright response. Will they provide a response riddled with ambiguity and straw men like they did for Matt Taibbi is another question entirely...

Thu, 07/02/2009 - 12:36 | Link to Comment crazyjerrygarcialover (not verified)
Thu, 07/02/2009 - 12:37 | Link to Comment Talkhard
Talkhard's picture

Rise up and stab them with your plastic forks!

Thu, 07/02/2009 - 12:53 | Link to Comment Anonymous
Thu, 07/02/2009 - 16:24 | Link to Comment Talkhard
Talkhard's picture

Rise up and gouge them with your plastic sporks!!

Thu, 07/02/2009 - 12:37 | Link to Comment Anonymous
Thu, 07/02/2009 - 14:32 | Link to Comment andy55
andy55's picture

Example please. I'm pretty solid with that stuff and didn't note any issues.

Thu, 07/02/2009 - 16:21 | Link to Comment Marla Singer
Marla Singer's picture

I would have written a shorter letter but I didn't have the time.

 

(We wanted to get a response out quickly or I would have wordsmithed some more).

Sat, 07/04/2009 - 17:04 | Link to Comment Anonymous
Thu, 07/02/2009 - 12:40 | Link to Comment Veteran
Veteran's picture

Excellent riposte, Marla. Have to agree with mentat, though

cricket, cricket

Thu, 07/02/2009 - 12:41 | Link to Comment Racer
Racer's picture

Nice one :) Keep up the good work ZH

Thu, 07/02/2009 - 12:46 | Link to Comment JordanYT1
JordanYT1's picture

Mr. Durbin... ha ha... they got Tyler mixed up with the Senator from Illinois.

Thu, 07/02/2009 - 12:48 | Link to Comment Anonymous
Thu, 07/02/2009 - 12:49 | Link to Comment Mr.Durbin
Mr.Durbin's picture

Thats Mr. Durbin Sir!

Thu, 07/02/2009 - 12:55 | Link to Comment Mazarin
Mazarin's picture

1) Don't EVER loose your sense of humor with these foes - it's the ultimate insurgent/underdog weapon. They will attempt to draw you out, drag you down, make you fight on their grey field of guarded corporate-speak and literal banality. They will try to fire your indignation with aloofness and arrogance. But you will remain Voltaire-like in your impeccable reason, factual accuracy, use of colorful metaphor, and dazzling rapier wit.

2) These requests for information might ALSO be made, in parallel, as SHAREHOLDERS of Goldman Sach who are worried about corporate liability. Anyone you know hold a bunch of GS stock?

Thu, 07/02/2009 - 13:10 | Link to Comment Anonymous
Thu, 07/02/2009 - 15:45 | Link to Comment bruiserND
bruiserND's picture

http://www.scribd.com/doc/17017708/Michael-Lewis-The-Man-Who-Crashed-the...

you only need one share to attend the shareholders meeting

Sat, 07/04/2009 - 17:14 | Link to Comment Bob
Bob's picture

DID I HEAR THAT RIGHT?!!!  You see where that could go, I trust.  What does it take to get heard at the meeting?  Where and when is it?

GS shares are dear, but I can cough up a share for the price of admission . . .

Anybody else?

I can picture a sea of zerohedge hats (though I would prefer t-shirts, since hats can be dress-coded out just about anywhere) in that "audience" of active GS shareholders. 

Thu, 07/02/2009 - 12:58 | Link to Comment Anonymous
Thu, 07/02/2009 - 13:13 | Link to Comment Anonymous
Thu, 07/02/2009 - 13:45 | Link to Comment calgaryschmooze
calgaryschmooze's picture

Canada Day was yesterday. Please don't bring our country into this, even though our central bank chief is ex-GS.

Thu, 07/02/2009 - 14:47 | Link to Comment Anonymous
Thu, 07/02/2009 - 13:00 | Link to Comment Rex Crotch
Rex Crotch's picture

Dear Marla,

Go fuckyourself.

GS

I seriously doubt they will give you a legitimate response. They gave a half ass one to Matt Taibbi.

Thu, 07/02/2009 - 13:02 | Link to Comment ejlamas (not verified)
Thu, 07/02/2009 - 13:04 | Link to Comment Anonymous
Thu, 07/02/2009 - 13:05 | Link to Comment Undertaker (not verified)
Thu, 07/02/2009 - 13:07 | Link to Comment Anonymous
Thu, 07/02/2009 - 13:23 | Link to Comment aldousd
aldousd's picture

Lawyers? Who has money to pay for lawyers?... oh... wait. nevermind.

Thu, 07/02/2009 - 13:23 | Link to Comment mezcal
mezcal's picture

Not to be a stickler, but...

Ah Marla, you slay me!

Thu, 07/02/2009 - 13:45 | Link to Comment wiskeyrunner
wiskeyrunner's picture

Goldman will try and keep you off balance, stay focused. A lot of comments are coming indented to do just that. Keep at em, beat them from the inside out.

Thu, 07/02/2009 - 13:49 | Link to Comment max2205
max2205's picture

Dear Marla,

GS would propose to your staff an offer of employment for one year at $500,000 (US TARP of course). Contingent would be to shut down your Website.

Best Regards,

GS

Sat, 07/04/2009 - 17:25 | Link to Comment Bob
Bob's picture

Yes, you could no doubt do that job--saying nothing--from home. 

You might even get a new widescreen for your basement crib.  Not to mention 52 paychecks and flight vouchers plus office equipment . . . 

Yeah, right! 

Thu, 07/02/2009 - 13:54 | Link to Comment Got2balls
Got2balls's picture

It begs the question, why is CNBC GS start caring about what bloggers are saying?

Thu, 07/02/2009 - 14:00 | Link to Comment Anonymous
Thu, 07/02/2009 - 14:50 | Link to Comment Arco
Arco's picture

My thoughts exactly. It legitimizes ZH.

Thu, 07/02/2009 - 14:13 | Link to Comment KidDynamite
KidDynamite's picture

the weekly program trading stats are out for last week, which includes the Russel Rebal, and as I explained last week, the customer facilitation numbers are way up.

http://www.nyse.com/pdfs/PT06.22-06.26.pdf

however, i'm somewhat mystified by the complete absence of Goldman from the report... did they forget to file their DPTR all week?

Marla - the disappearance of GS from this report this week is far more interesting than their usual dominance which you guys harp on every week... look into it.

Thu, 07/02/2009 - 14:14 | Link to Comment ShankyS
ShankyS's picture

Very nise Merla. Maybee if Denis Kneel piced up on this it woud get somewere. Mr. Turden is a nobodi. Why would they want to mess with a bunch of digital dickweeds? Bet Mr. Canday luzes his job just for repliing to this. I hope they do respong. Good luuk!

Thu, 07/02/2009 - 14:16 | Link to Comment Woodshedder
Woodshedder's picture

Goldman will respond.

Remember Van Pragg's statement?

They are "painfully aware" of their need to be a force of good, and dodgy legal wording that gives the appearance that may data mine their own clients is definitely not helping with the whole force of good thing.

Thu, 07/02/2009 - 14:20 | Link to Comment agrotera
agrotera's picture

Yea, the force for goodness causes Darth (Van Pragg) Vader and his lackeys great pain.

Thu, 07/02/2009 - 14:17 | Link to Comment agrotera
agrotera's picture

Hi Marla,

I wish you hadn't divulged the 'fight club' info, because that is really personal to you and the OH crew... next thing you know Dennis DW K will be making fun of the symbolism and of course, that just ticks me off.

But, other than that, great progress!!! Can't wait to see the reply.

Thu, 07/02/2009 - 14:17 | Link to Comment Anonymous
Thu, 07/02/2009 - 14:47 | Link to Comment crazyjerrygarcialover (not verified)
Thu, 07/02/2009 - 15:22 | Link to Comment Anonymous
Thu, 07/02/2009 - 15:25 | Link to Comment deadhead
deadhead's picture

for our GS friends...

"When life looks like easy street there is danger at your door"

Fri, 07/03/2009 - 03:41 | Link to Comment SheHunts (not verified)
Fri, 07/03/2009 - 09:46 | Link to Comment crazyjerrygarcialover (not verified)
Thu, 07/02/2009 - 14:27 | Link to Comment Anonymous
Thu, 07/02/2009 - 15:26 | Link to Comment Arm
Arm's picture

Your winnings, sir.

Thu, 07/02/2009 - 14:47 | Link to Comment channel_zero
channel_zero's picture

I commented on the first post that using web site activity to somehow front run a trade on it is improbable. I still stand by that.

No matter what, GS will tell everyone in the world that's what you accused them of and they can self-righteously prove you wrong. Thus begins their ZH marginalizing/discrediting efforts. They will use the conflated facts mistake to justify their status.

The right question to build a story around is #3. Most of the rest of the reply was grandstanding filler. You won't ever get an answer out of them, but whatever.

Thu, 07/02/2009 - 15:01 | Link to Comment Anonymous
Thu, 07/02/2009 - 15:02 | Link to Comment monopoly
monopoly's picture

I do believe GS has met its match in MS. Well done My Lady.

Thu, 07/02/2009 - 15:54 | Link to Comment wiskeyrunner
wiskeyrunner's picture

Beat them from the inside out from the inside out. This is the reason for the high pay to keep staff inline.

They know there doing wrong, and the wrong information in the wrong hands could do severe damage.

I bet they strip search every employee before they leave the bldg.

Thu, 07/02/2009 - 16:36 | Link to Comment DaylightWastingTime
DaylightWastingTime's picture

"There was madness in any direction, at any hour. You could strike sparks anywhere. There was a fantastic universal sense that whatever we were doing was right, that we were winning"
Raoul Duke

Keep up the good work 0H

Thu, 07/02/2009 - 16:37 | Link to Comment the battle
the battle's picture

So when do we get to fight, or kill, just joking, kind of, GS?

Thu, 07/02/2009 - 17:03 | Link to Comment FischerBlack
FischerBlack's picture

LOL, he must be confusing you with the insider trading, philandering Dick Durbin (who is presumably evil enough to also be their client).

http://www.suntimes.com/news/1620776,CST-NWS-durbin13.article

Thu, 07/02/2009 - 17:07 | Link to Comment alien-IQ
alien-IQ's picture

Tyler, Marla and the whole gang here at Zero...YOU ARE WONDERFUL!

Really great work here guys and gals. Really GREAT work.

Thu, 07/02/2009 - 17:50 | Link to Comment Anonymous
Thu, 07/02/2009 - 18:11 | Link to Comment FischerBlack
FischerBlack's picture

Your suggestion that we monitor our web site to facilitate front-running is untrue and offensive.

Canaday, I'm sorry to have to tell you this, but you don't know if it's true or not. You have no idea what's going on in the other silos of your firm. And I had no idea it was so easy to offend you people. If we try just a bit harder, maybe you'll start filing lawsuits for defamation. And then we get to do *discovery* -- and God knows you don't want that.

Thu, 07/02/2009 - 18:17 | Link to Comment Anonymous
Thu, 07/02/2009 - 19:21 | Link to Comment the battle
the battle's picture

you mean jew jig? Being full blooded scotch-irish I take offense.

Thu, 07/02/2009 - 18:17 | Link to Comment DaylightWastingTime
DaylightWastingTime's picture

Audit the Fed
S604

Thu, 07/02/2009 - 20:28 | Link to Comment agrotera
agrotera's picture

Congress, pls revoke the Fed's authority, and buy back the 300 shares that represent 100% ownership of the Fed, this massive privately held monopoly/cartel.

Anti-trust laws were enacted to prevent the potential political power that monopolies can exert--the Fed owns and runs most all of our current elected officials, and the 6% dividend that it keeps as operating expense from all member banks on 1% of their reserves (which are massive with the bailout bonanza) keep on quietly eroding the value of our money--it is like US citizens are all in Fed credit hell before they even started doing all the printing for this bailout...this is money that doesn't have to be spent, if we take back public ownership of the federal reserve.

Thank you,
Your friendly broken record

Thu, 07/02/2009 - 20:11 | Link to Comment goingnutzinmaine (not verified)
Thu, 07/02/2009 - 20:11 | Link to Comment goingnutzinmaine (not verified)
Fri, 07/03/2009 - 09:50 | Link to Comment crazyjerrygarcialover (not verified)
Thu, 07/02/2009 - 22:05 | Link to Comment Anonymous
Thu, 07/02/2009 - 22:31 | Link to Comment bruiserND
bruiserND's picture

J. Aron {Goldman Sachs} is a member of Dr Richard Sandors'
Chicago based "Climate Exchange"

Obama has proposed auctioning pollution permits to raise at least $646 billion from 2012 to 2019 {AKA shake down}

They want cap & trade so they can trade it. It's got nothing to do with air quality or global warming.
They want to tax EVERYONE on Earth and trade a never before known commodity; a "carbon credit" in the derivatives market.

1.3 billion Muslims that cannot pay or be charged "interest" will recognize
"carbon credits".

If you liked credit default swaps , you'll love carbon credits

Fri, 07/03/2009 - 02:00 | Link to Comment binge-trader (not verified)
Fri, 07/03/2009 - 07:33 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

It is telling that they commented at all, and methinks this site is read thoroughly every day at GS. The GS Program Trading revelations, publicized only on this site, coupled with ZH's increasingly formidable "street cred," have obviously generated some level of concern at GS, and my guess is, as is typical with these type of linear thinking arrogant bastards, they're clueless on what this is, where it is going, and how to handle this, unlike the relatively easier target at goldmansachs666.com. Nonetheless the reply shows that their main perception right now is "threat," and so their defense systems have been fully activated, although you might not detect that from the fairly offhand nature and dismissive tone in their reply. In my book, their response is intended as a "probe" to discern (by way of response) how ZH operates, and maybe by whom. If you think that each word in the response was not pondered by a committee at GS and one or more hired PR consultants, you would be naive.

Please publish the right FOIA requests we should all be sumbitting to get to the bottom of the NYSE/SEC responses to Goldman's Program Trading activities and the highly suspicious discontinuation of the reports regarding it.

Fri, 07/03/2009 - 11:54 | Link to Comment ToNYC
ToNYC's picture

It's not hard to believe that "cap and trade" was a play that Paulson (all-Ivy League offensive lineman)was able to call as Treasury Secretary and Obama was the populist green guy they needed to get behind to put it over the goal line.
Who knows? It may be one of those forces for good of which they are painfully aware. In any event, it will be like Enron..wait till the inter-dealer brokers skew the market on these like they have had at it with CDSs..another shell game to fleece the sheep from their hard-earned labor as their finances get serviced.
Plain vanilla wins here on out. We've got your number. Get a real job in math or science, smartest guys on the block.

Fri, 07/03/2009 - 12:45 | Link to Comment Anonymous
Fri, 07/03/2009 - 15:00 | Link to Comment Anonymous
Fri, 07/03/2009 - 16:23 | Link to Comment Anonymous
Sat, 07/04/2009 - 02:44 | Link to Comment Anonymous
Sat, 07/04/2009 - 09:03 | Link to Comment Anonymous
Sat, 07/04/2009 - 10:33 | Link to Comment Anonymous
Sat, 07/04/2009 - 14:33 | Link to Comment agrotera
agrotera's picture

Do you remember the couple of weeks it took for Obama and Geithner to admit that they backed the Paulson/Bernake plan?

Those few weeks were weeks of hope that our current pres and treas. sec wouldn't be cronies of the Fed and all their agents (inc. GS).  The week obama and geithener announced that they backed the paulson/bernake plan was the week that China declared to America that we need to safeguard their investment, and the week the UN recommended that the world diversify away from the US$ as the world reserve currency.

Without a clear call to recall the TARP (and all the other acronyms) and an investigation as to how saving these banks is justified when letting them unwind is the only right thing to do, we are living through the biggest bank heist and it is all blessed by the US gov. thanks to our nonrepresenting representatives.  When we can't depend on our elected officials to represent us, we are no different than the banana republic--i just hope that enough good people who cant be bought will step up and replace everyone in washington next time around. 

Sun, 07/05/2009 - 09:26 | Link to Comment crazyjerrygarcialover (not verified)
Sun, 07/05/2009 - 20:55 | Link to Comment agrotera
agrotera's picture

Thank you crazyjerrygarcia!

You are right on!   In my dreamer brain, i hope that wethepeople can get aligned to exert our rights peacefully.  I do imagine, that the current dark force of the private federal reserve corporation (the true puppeteer to most all polititians) will exert that power to make this honest ourcry for liberty and justice seem to be some kind of radical movement.  I can imagine peaceful settings having shills planted to start violence just to discredit the events.  But, with all that we as human beings are capable of, and even when you think of the community organizing machine that obama used to get elected, certainly we can get the same kind of machine moving for the truth of what needs to happen, and that way, we can recapture our country with peace and the legal means at our disposal.  imagine if all the people who voted for obama knew that he was a puppet for the interests of the private federal reserve corporation-- now that would get some change for the better started!

i still can't get TARP passed although the majority of the constituents of all the elected officials voting, didn't want it--isn't there recourse?  It is times like these where i feel so damned that i am not a lawyer!!!

Mon, 07/06/2009 - 16:50 | Link to Comment Anonymous
Sat, 07/04/2009 - 14:15 | Link to Comment Mortimer Duke
Mortimer Duke's picture

Are you sure Mr. Canaday misspelled Tyler's name? Maybe Mr. Canaday knows something the rest of us ZH readers don't. Could it be true that Tyler Durden is the pseudonym for Senator Dick Durbin...elementary Watson

Sat, 07/04/2009 - 19:54 | Link to Comment Anonymous
Sat, 07/04/2009 - 22:46 | Link to Comment Mortimer Duke
Mortimer Duke's picture

Yes, I get that Tyler Durden is an alias (pseudonym) for the name of the real or true blogger of ZH. My comment was tongue in cheek suggesting the real or true blogger was none other than Senator Dick Durbin; thus, the reason why Canaday addressed the letter to Durbin.

Sat, 07/04/2009 - 20:51 | Link to Comment Anonymous
Sun, 07/05/2009 - 19:38 | Link to Comment ptolemy_newit
ptolemy_newit's picture

Dear Zero Hedge,

 

Please dot the eyes and cross the t's and ensure all information correct on your web site hosting service contracts.  GS will simply buy the your name out from under out if possible.  If you use "godday" you may allready be introuble.

 

If fact they may allready own your name and us commentors will not know.

Sun, 07/05/2009 - 20:38 | Link to Comment Anonymous
Mon, 07/06/2009 - 00:42 | Link to Comment The Thinking Na...
The Thinking Nationalist's picture

ZeroHedgers: Have no fear. Our time is coming. We are just about ready to do The March On Rome (like Benito Mussolini). The people have not yet awakened ... times are not yet hard enough. But when 20-25% unemployment arrives, when the foreclosures reach their peak, when there are food riots in the major cities, our time will have arrived. We need to face reality. GS and their co-conspirators in Crimes Against The Nation (not Crimes against the State .. for it is the State that they OWN)will not be brought to heel until there is a change not only in the government but in the form and manner of that government. In terms of reform, think Falangist Spain or Fascist Italy. Are we ready for the Nationalist alternative?

Mon, 07/06/2009 - 01:23 | Link to Comment Anonymous
Tue, 07/07/2009 - 20:40 | Link to Comment Anonymous
Wed, 07/08/2009 - 04:20 | Link to Comment Anonymous
Thu, 07/09/2009 - 10:51 | Link to Comment Anonymous
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athenal's picture

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