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Wasn't there a lawsuit that an investment bank (can't recall if it was Goldman Sachs or not) can deceive its clients and not disclose that it has a competing or directly contrary interest?

And then there's this, and a dozen other stories about Goldman Sachs deceiving its clients in the past.

https://www.washingtonpost.com/opinions/goldman-sachss-long-...




FWIW, those rules are relatively nuanced. It's not like someone ruled that Goldman can deceive all clients at all times in all transactions.

Typically it comes up in places where there's a question of whether the bank is responsible getting their client the best possible price in a transaction or whether the bank is acting as an arms-length counterparty who happens to be taking the other side of the transaction. It also depends on the sophistication of the client and whether it's a transaction where the client should expect Goldman to be bullshitting them.

Goldman acting as a bank for the Apple credit card is completely different from Goldman acting as the counterparty in a large FX hedge or bond deal.

Not that I like defending GS


You're probably thinking about financial planners trying to avoid disclosure that they are not fiduciaries.




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