"The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways."

WTF? Maybe goldman is the only entity that is allowed to manipulate markets... Judging by the releas of their profits today I would suggest that this "Theft" is more damaging to GS if it comes to the light of day that they have been manipulating markets themselves.

MF*s

Goldman Profit Soars on Strong Trading Gains-

NEW YORK (Reuters) - Goldman Sachs Group Inc (NYSE:GS - News) reported a 33 percent rise in quarterly earnings Tuesday on strong trading results, continuing an extraordinary rebound from the near meltdown of the U.S. financial sector last fall.

The results for Wall Street's largest surviving investment bank topped analysts' estimates, bolstered by improving markets and an upswing in advisory fees.

Goldman reported net income for common shareholders of $2.7 billion, or $4.93 a share, compared with $2.05 billion, or $4.58 a share, in the quarter ended May 30, 2008, when the bank had a different reporting schedule.

Analysts polled by Reuters Estimates had forecast, on average, $3.49 a share. Analysts polled by First Call had forecast $3.54.

Goldman shares were fractional lower in premarket trading.

Goldman, the first major U.S. bank to report second-quarter earnings, said trading income jumped 93 percent from a year ago, while its equity underwriting business produced record revenue of $736 million.

Investment banking revenue of $1.44 billion was down 15 percent from a year ago but rose 75 percent from the 2009 first quarter.

Keith Davis, an analyst at Farr, Miller & Washington, said the results appeared to be strong.

"They look like a blowout to me, but I don't think it should be a big surprise to anyone," Davis said. "The environment is very conducive to the type of things they do. Spreads are very wide, fixed income and equity issuances have been pretty strong."

William Smith, chief executive of Smith Asset Management, said, "Things are very fragile but they manage to make money in all environments, which is what you're supposed to do."

With Goldman facing a string of publicity of late, Smith said the bank should be applauded for its performance.

"Goldman should be celebrated, not demonized," he said.

Second-quarter gains were tempered by a one-time $426 million charge related to Goldman's repayment of $10 billion in loans from the U.S. Treasury's Troubled Asset Relief Program, known as TARP.

The company set aside $6.65 billion for compensation in the quarter. The Obama administration is focused on curbing compensation in the banking industry.

(Reporting by Steve Eder and Elinor Comlay; editing by John Wallace)