Goldman Gave Bullish Janus Tip: Report

NEW YORK (TheStreet) -- Another day, another PR disaster for Goldman Sachs (GS Quote).

That seemed to be the attitude of the stock market on Monday anyway as the bank's shares were up 1.5% early Monday afternoon, despite a report in The Wall Street Journal that offers a detailed look into some questionable practices.

According to the report, Goldman's research department told about 50 clients that the firm was bullish on shares of Janus Capital (JNS Quote) even though its official report indicated it was neutral on the shares. The bullish view was not communicated for six days, after the shares had run up 5.8%.

Richard Bove, analyst with Rochdale Securities, does not believe the report will do serious damage to Goldman, even if it ultimately leads to an investigation and a fine. He notes that in 2003, several firms, including Goldman, JPMorgan Chase (JPM Quote), Morgan Stanley (MS Quote)and Citigroup (C Quote), were fined for publishing research that in many instances was more bullish than analysts' actual opinions, expressed in private emails.

"There was one huge group of people that never stood up and said anything, and that was the customers," Bove says. He does not think things will be any different this time around.

Goldman was the target of widespread outrage a few months ago when it was revealed that the company would receive nearly $13 billion in connection with various complex derivatives transactions tied to the controversial bailout of American International Group (AIG Quote). The company argues that number is an oversimplification.

The outrage may have subsided briefly, but soon was rekindled as Goldman reported record earnings, and it begins to look like its executives are in line for hefty compensation awards, even as the economy continues to struggle.