And At The Door Ask For The Special

Anyone on Earth surprised by Goldman Sachs playing favorites?

Some investors are shrugging their shoulders at reports that Goldman Sachs Group Inc gives special trading advice and early access to analyst research to a select few clients, saying the practice is commonplace in the industry.

The Wall Street Journal reported on Monday that Goldman hosts a weekly meeting of its research analysts, joined by top clients, to discuss trading ideas. The story raised the issue of favoritism for top Goldman clients, prompting the Financial Industry Regulatory Authority and the Securities and Exchange Commission to commence investigations, the paper said Tuesday.

FINRA, the securities industry's regulatory arm, said it was looking into the situation. The SEC declined to comment.

Investors like Marshall Front, chairman of Front Barnett Associates LLC, said Goldman Sachs is not alone among brokerage firms in "favoring their largest and most productive clients" with trading tips.

It's not a big deal so long as market-moving information is not being shared, according to this view.

Of course it's not a big deal. Everybody does it, so it must be legal, right?

If there's one real, honest complaint I have about Barack Obama, it's that his financial reform team has done all of jack squat to actually reform the system in orde to prevent another financial collapse from occurring. In fact, I'd bet we're going to hit another recession before Obama's term is over.

Of course, Goldman Sachs will keep humming along no matter what.