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from WSJ.com: Deal Journal
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Goldman Sachs has withdrawn its lawsuit against the seven former employees in its private wealth-management group who left for Credit Suisse.
- Everett Collection
As Deal Journal reported Thursday, Goldman had alleged, among other things, that the seven employees from its Atlanta office had contacted numerous clients after abruptly leaving the firm and asked them to move their accounts to Credit Suisse. Goldman sought a restraining order to temporarily prevent the former employees from soliciting Goldman clients and employees, among other relief, while it proceeded with a separate arbitration claim related to the matter.
Goldman declined to comment about its decision to drop lawsuit, other than to say the matter has been resolved.
Still, the suit provided insight into Goldman’s corporate culture. Exhibits accompanying the complaint included Goldman’s employee rulebook about preserving confidentiality. The document shows the extent to which Goldman goes to keep information secret, something Goldman’s clients certainly welcome, but to the average reader not in the securities industry might seem as if the manual was written by Ian Fleming.
Consider these excerpts from the rulebook:
On Telephone Security:
Avoid using cellular or cordless telephones to discuss confidential business matters. Such devices are radio transmitters and are frequently monitored by hobbyists and professional information brokers.
Do not use a speakerphone when discussing proprietary or confidential information unless you are in a secure place. These phones have the potential of being overheard.
More on cellphone usage:
Assume your cellular and portable telephone transmissions are being overheard and/or recorded. Given the widespread availability of scanners, cellular telephone conversations are now routinely monitors by third parties. In particular, the securities industry has become a popular target for those seeking unauthorized access to confidential information.
Security when outside the office:
Use care when working on confidential documents on any airplane, subway, railway, or other public conveyance.
Curtail confidential conversation in elevators, taxis, or limousines, and in public setting outside the office, such as social gatherings. If you must discuss confidential information outside a secure office, use code words to identify any key players.