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Who is the Russian accused of stealing Goldman's top secret trading codes?

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Why does Goldman Sachs Group (NYSE: GS) earn so much money trading equities? The answer lies in a proprietary set of secret codes that Goldman uses when making their trades. In the first quarter of this year Goldman raked in $2 billion dollars from its equity trading and is the leading trader on Wall Street. Even the venerable JPMorgan Chase & Company (NYSE: JPM) only made $1.8 billion.

Now a Russian, named Sergey Aleynikov, who previously worked for Goldman is accused of stealing Goldman"s secret codes. These codes are the property of Goldman and enables them to do high speed and high volume trades in various stock and commodity markets.


From the FBI investigation it was learned that Aleynikov had downloaded secret files to his home computer, laptop and a portable memory device. It was also learned the Aleynikov earned $400,000 a year and wanted to double his salary. He is being held in lieu of posting a $750,000 bail.

This is a classic example of the little "greed" monster that lurks all around Wall Street. Aleynikov wanted to take a shortcut to riches and found a jail cell instead of his pot of gold.

Cardinal rule number one: "never let the "greed" monster enter your psyche. It will eventually destroy you.

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Last updated: November 27, 2009: 08:16 AM

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