Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (87718)	3/30/2001 10:11:04 AM
From: pater tenebrarum	Respond to of 436258

no...but i heard of him...is supposed to be good. Goldman Sucks implicated in market manipulation (again): Goldman Sachs to face criticism in Maxwell report By Michael Peel and Charles Pretzlik in London Published: March 28 2001 20:59GMT \| Last Updated: March 29 2001 19:28GMT A UK government-commissioned report has concluded that investment bank Goldman Sachs bears a "substantial responsibility" for allowing the late Robert Maxwell to manipulate the stock market through illicit purchases of shares in Mirror Group Newspapers. The criticism is contained in the Department of Trade and Industry's report on Maxwell's business affairs, likely to be published later this week. The report - seen in final draft form by the Financial Times - describes how the failings of Goldman and a range of financial institutions in part enabled Maxwell to commit one of the biggest business frauds of the last century. It concludes that while Maxwell bore huge responsibility for what happened, the conduct of leading City advisers fell well short of good practice. Accountancy firm Coopers & Lybrand is also facing embarrassing criticism from the DTI. The DTI said on Wednesday that criticisms in the final draft would remain in the published version, which is due to be released on Thursday or Friday. The report states that Maxwell made secret purchases of MGN shares in breach of undertakings in the prospectus prepared for MGN's flotation in 1991. These purchases were part of an attempt to prop up the share price of the company. Maxwell had pledged MGN shares to banks in exchange for loans to his private companies. Maxwell supported the shares in an effort to prevent the banks from calling in their loans, an action that would have sunk his empire of private businesses. Goldman's involvement with Maxwell was as the broker to some of his businesses, although it was not an adviser on the MGN flotation. Goldman carried out some large share transactions for him and was underwriter on the flotation of some of his other companies. The DTI inspectors conclude that while Maxwell must bear "primary" responsibility for the illicit share dealing, Eric Sheinberg, a senior Goldman partner in London, ought to have known the transactions were conducted on behalf of Maxwell. The inspectors say they "are satisfied that Mr Sheinberg must have appreciated that [Robert Maxwell] was in fact the purchaser". They add that they are satisfied that Mr Sheinberg was not in league with Maxwell. The report makes a further criticism of Goldman over its role in purchases of shares in Maxwell Communication Corporation, Maxwell's other public company. It will say Mr Sheinberg "must have come to appreciate" that Maxwell was in fact the purchaser of MCC shares apparently sold to others. The report will say this conclusion on MCC was reached independently of evidence that was called into question by Goldman. The inspectors add that they accept that Mr Sheinberg is a man of "good character and unblemished reputation". Goldman has always denied any complicity in Maxwell's fraud and in 1995 it agreed to pay $253m ( £176m ) to settle Maxwell-related lawsuits in New York and London. Neither Mr Sheinberg nor anyone else connected with the firm's dealings with Maxwell is thought still to be employed at Goldman. The investment bank declined to comment. Mr Sheinberg could not be reached for comment.