Goldman, Merrill E-Mails Show Naked Shorting, Filing Says
Key Excerpts from Article on Website of Businessweek/Bloomberg News
Posted: May 22nd, 2012
Goldman Sachs and Merrill Lynch employees discussed helping naked short-sales by market-maker clients in e-mails the banks sought to keep secret, including one in which a Merrill official told another to ignore compliance rules, Overstock.com ... said in a court filing. The online retailer accused Merrill, now part of Bank of America and Goldman Sachs of manipulating its stock from 2005 to 2007, causing its shares to fall. Lawyers for Overstock ... asked a judge to make public e-mails sent in 2005 and 2006 that it said reflect business decisions to put profits and corporate ambition over compliance at Goldman Sachs and Merrill. The banks decisions to intentionally fail to deliver Overstock shares caused large-scale naked short selling of the companys stock, according to the filing. Four media organizations, including Bloomberg, the New York Times, Wenner Media and The Economist, intervened in the Overstock case and joined the companys request to unseal court files. Bloomberg News obtained a copy of the filing describing the e-mails.
Note: For more on this from reporter Matt Taibbi, click here.