A Goldman Sachs executive has admitted that the company was willing to trade against some of its own clients' investment ideas, as well as recommending trades that the firm had already put money into.
In an email leaked to the New York Times, Thomas Mazarakis, head of Goldman Sach's fundamental strategies group, admitted to the ongoing practices to a select group of clients.
"We may trade and may have existing positions, based on trading ideas before we have discussed those trading ideas with you," he stated.
Mr Mazarakis said his unit was willing to bet against certain instruments recommended by the group, as well as recommending investments that Goldman Sachs had already traded upon.
When quizzed about the disclosure, Goldman Sachs spokesman Lucas van Praag told the paper that such behavior had been happening for several years and was regarded as "best practice" within the firm.
Last month, the Wall Street Journal reported that the company was holding a series of talks with major investors in an attempt to head off discontent about its planned record bonus payouts to staff.
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