Goldman 'Clients': Only Some Are Muppets

Galleon was a real client. The 'muppets' Smith's managing directors were e-mailing each other about were fake clients or, as Partnoy put it, "fellow gamblers around a poker table. Goldman will ensure that the rules of the game are accurately described - the financial equivalent of checking to be sure there are 52 cards in the deck. But it is not obliged to act in a disadvantaged counterparty's best interests, any more than a savvy poker player is obliged to show a poor player his good cards."

Still, if you want to keep space in your brain for other matters, it is okay to ignore these subtleties. When in doubt, it is generally safe to assume Goldman is up to no good.

-- Written by Dan Freed in New York.

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