Goldman Managing Director Snagged In Insider Trading Probe Leaves Firm

Tyler Durden's picture

With the entire world, and certainly GETCO's ES and EURUSD algos, focused on every single update out of the Italian Senate race, which now appears certain to not bring the necessary 158 seats to the Bersani-Monti coalition leading to a chaotic revote in the coming months, here is some tangential news of the "who could have ever seen this coming variety." Following last week's Heinz insider trading probe, which implicated a Goldman Sachs account in Zurich belonging to some private wealth client, who was so anonymous not even Goldman knows who it belonged to, we now learn that yet another Goldman employee has just left the company in a totally separate insider trading probe.

From Reuters:

A Goldman Sachs Group Inc salesman who has been under investigation for possibly passing confidential information about technology companies to hedge funds has left the bank, a spokesman confirmed on Monday.


David Loeb, 42, who was a managing director based in New York, has never been charged with wrongdoing. But his name surfaced among a small group of Goldman bankers under scrutiny in connection with an insider trading probe conducted by the FBI.


During last year's trial of Rajat Gupta, a former Goldman board member who was convicted of passing nonpublic information about Goldman's financial state to hedge fund manager Raj Rajaratnam, defense lawyers said it was Loeb, not Gupta, who gave Rajaratnam the secret information.


A U.S. prosecutor told the judge that Loeb provided Rajaratnam with information about Intel Corp, Apple Inc and Hewlett-Packard Co, but nothing about information on the trades at the center of the Gupta case.

Don't worry though: we are confident that if this ever goes to court, it will be all Fabrice Tourre's fault. Again.

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francis_sawyer's picture

So... Loeb... What's the over/under on how many pushups you can do before Blankfein polishes off the jelly donut? 

knukles's picture

A client so mysteriously unidentified that even Goldilocks doesn't know.

Now that my friends, is Bullshit Deluxe with Truffles on top and a dash of Cooch Scent.
So, how the fuck can anybody at Goldilocks take the order from the client to effect the purchase in his portfolio if nobody knows who the fuck it is?
Conversely, nobody can claim the money, if nobody knows the account owner and thus then a Goldilocks employee initiated the trades (Which makes for interesting abandoned property claims by GSBank, Zurich) No... they've already said that to not be the case.

Implementing The Don't Know Your Client Rule

mayhem_korner's picture



Since I am innocent of this crime, I find it decidely inconvenient that the gun was never found.

(Andy Dufresne)

ParkAveFlasher's picture

Rogue waves, rogue analysts, rogue funds, rogue clients, rogue directors, rogue banks, rogue mortgages, rogue meat processors, rogue cops, rogue asteroids, rogue hemmaroids, rogue mental patients, rogue operating systems, rogue algorithms, rogue traders, rogue nations, rogue states, rogue dictators, rogue regimes, rogue currency swaps, rogue missiles, rogue satellites, rogue oil companies, rogue weather, rogue dobermans, rogue old ladies riding rogue scoot-a-bouts and brandishing rogue dentures, rogue lollipops available in rogue flavors, rogue soda volumes, rogue gun owners, rogue bunny rabbits, rogue cupcakes, rogue clown testicles, rogue numbers, etc...

Everything is explained!  Slainte!

TruthInSunshine's picture

Someone on Zero Hedge said it best last week:

"Whenever something filthy & disease-laden is discovered, there's inevitably a Goldman cockroach scampering about..."

IamtheREALmario's picture

And this may very well be the reason that Goldman typically interviews prospective employees, on the average, 23 times before they are hired... and why the US military now asks its brainwashed recruits if they are willing to fire on unarmed American citizens.

Only the most ethically and morally chanllenged need apply.

Imminent Crucible's picture

When the grifters sign on with Goldman, the first thing they do is sign a secret M.O.U. promising that if they get caught they will immediately leave the firm.  Preferably to run some central bank somewhere. Maybe in some busted-ass third world country with a cosmic federal debt. The USA, for example. Or the UK or France or almost anywhere.

rayduh4life's picture

Except they prefer to call it "flexability" as in  possesses a moral flexibility that is unattainable by most people.

Downtoolong's picture

I can't be sure, but, I think I've narrowed it down to one of 635 people. 535 work on one side of the building and 100 work on the other.

Carl Spackler's picture

Is GS caught in a web of falsehoods?

IF Goldman's claim is that they do not know who the client trading in the Zurich account is, as a Bank Holding Company they are guilty of violating U.S. Know-Your-Customer (KYC) and anti-money laundering (AML) laws. 

Seeing as everybody has been hit with these violations, during the past 5-10 years, then they may have decided this was less pain to absorb and less brand equity to lose than the other option...identifying which employee tipped which account holder in another GS insider trading scandal.

EscapeKey's picture

no, no, ethics are not required.

why else would they employ those super-effective chinese walls?

mayhem_korner's picture



Pete Rose will be inducted before Loeb gets a cell mate.

thismarketisrigged's picture

fuck goldman sachs, i wish nothing but the worst on that fucking company

fockewulf190's picture

You would think Goldman would have been at least a little bit stealthy with that Heinz trade.  It was more obvious than crabs doing a scatter on a bald pussy!

mayhem_korner's picture



Bloo horseshoe loves 57 varieties.


GrinandBearit's picture


All of Goldman's profits/activities are based on insider trading!

Super Broccoli's picture

"if this goes to court" ?

Gota tell you smthg mate, santa doesn't really owns flying deers !

which way western man's picture

not enough money in this and all the worlds for the avaricious "jew"

Edward Fiatski's picture

"Goldman Sachs rules the world"

BTW, what's his handle on ZH?

mayhem_korner's picture



Pretty sure LLoyd is MDB.

Edward Fiatski's picture

Must be a double-personality disorder then. Still, somewhat fits.

knukles's picture

This mental vision of Lloyd at the only computer not blocking ZH at Goosmanhedge where he spends all day commenting under a variety of screen names and avatars only to yell, mumble, mutter, break crap and throw shit at people who interrupt him.
Make a great old time SNL type financial comedic routine.

Seriously BAD comments about Bennie, Timmah, et al....

Bandit und Buster's picture

Well almost it seems... he's trying...see 

"Nations will gather together to bring their homage to the people of God; the whole fortune of nations will pass into the hands of the Jewish people, they will march behind the Jewish people, in chains as captives, and will prostrate before it." Isador Loeb, Le Probleme Juif.

“Most Jews do not like to admit it, but our god is Lucifer   -so I wasn’t lying. -and we are his chosen people.  Lucifer is very much alive.”    The above is an exact quote of Harold Wallace Rosenthal, former top administrative Aide to the then Senator Jacob Javits, who was since defeated in the 1980 election.


learn at

Martin T's picture

In case of legal issues, put the blame on a young French, preferably from a top engineering school. To ensure you can fully put the blame on him, make sure he gets promoted to at least VP, an analyst level, would not cut it in front of the judge.


Lather, rinse, repeat. 

Glass Seagull's picture



Going to head the SNB, no doubt.

buzzsaw99's picture

If you lose dollars for the firm by bad decisions, I will be very understanding. If you lose reputation for the firm, I will be ruthless... Warren Buffett


It's hard to lose something you never had.

which way western man's picture

I believe in loeb's "culture", he is required to steal at every opportunity.

So, there is a racial, religious defense available to him.

Seasmoke's picture

The squid are all inside traders. Too bad for some of them, they are not Congressmen.

knukles's picture

Then they could really do it legally and be rid of legal costs, boosting the profit margins significantly.

Papasmurf's picture



The squid are all inside traders.


Squid aren't inside traders, the squid are arsonists who buy insurance policies against your property and then set it ablaze.

HeatMiser's picture

Oh course by GS you mean John Kerry's account holder. Wink wink.

Whiner's picture

Sorry, Loebby, you're gonna have to take one for andwalk the plank for Team Squid. Keep Buffett out of this. Here's your coke and cash bonus after you sign your affidavit and pet-arranged plea-deal.

waterwitch's picture

Drone Loeb. Drone Buffett. Drone GS.

Downtoolong's picture

David Loeb, 42, who was a managing director based in New York, has never been charged with wrongdoing.

Because fuck, if they did then everyone else at Goldman just like him would have to be charged too.

Mi Naem's picture

One of Loeb's "colleagues" probably wanted Loeb's job, and threw him under the bus for it. 

So now, at Goldman and in the Urban Dictionary, that process for moving up the ladder and acquiring a rival's position will be called a "Loeb Job". 

israhole's picture

Jew walks free while the Indian goy does time.

Chicago bear's picture

Kuhn & Loeb is a board member of the Fed, aren't they? Coincident name?

helping_friendly_book's picture

What do you expect?

Judge Rakoff, S.District NY, is the chief of the money-changers and nobody in his Temple ever gets more than a slap on the wrist. 

As long as that Jew sits on that bench all of the Jews of Wall Street are safe.

Unless you confess of course.

Ovey! What was Bernie thinking?

Bandit und Buster's picture

"Kuhn & Loeb is a board member of the Fed"

Yep, and the same ilk that funded the Russian communist revolution!

"The Bolshevik revolution in Russia was the work of Jewish brains, of Jewish dissatisfaction, of Jewish planning, whose goal is to create a new order in the world. What was performed in so excellent a way in Russia, thanks to Jewish brains, and because of Jewish dissatisfaction and by Jewish planning, shall also, through the same Jewish mental and physical forces, become a reality all over the world."
THE AMERICAN HEBREW September 10, 1920

Tijuana Donkey Show's picture

Yea, and it worked out great for all the jews in Russia.......

fnordfnordfnord's picture

...David Loeb, 42, who was amanaging director based in New York, has never been charged with wrongdoing...

Why is that remarkable? Bankers never get charged for anything.

NuYawkFrankie's picture

From the Suffocating Stench that is Goldman,

Lord Deliver Us...

eclectic syncretist's picture

What the fuck do you expect!!??  Goldman Sachs is an insider trading institution that makes all it's profits from insider trading of one form or another.  They ought to just but a big wall around the entire place, send in a regiment of bubba guards, and turn it into a prison, if there were any justice in the world.

Dewey Cheatum Howe's picture

This sounds like what they do with kid diddlers who work as teachers in school districts. They pay them off to quietly disappear when they are tenured.