Apparently, Goldman Sachs would be in trouble if it were a Vegas casino.
The issue deals with things called front-running and derivatives trading against its own investors. For the rest of us, “derivatives” is a general term used on Wall Street to describe any kind of securities trading that is done off the market and is consequently unregulated.
Oh, and these are always the types of deals that cause market crashes.
The Securities Act of 1934 specifically defines a class of “qualified” investors who are supposed to have enough assets and enough savvy to make their own mistakes, God bless ‘em. Yet in Vegas, where there is a sucker born every minute and capitalism is at least as popular as it is in New York, section 465.070 of the Nevada Gaming Law makes it a felony “to place, increase or decrease a bet or to determine the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or which is the subject of the bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome. ”
