Goldman Flap Puts Feds Back in Spotlight

Et tu, Goldman Sachs?

A congressional committee reports that Goldman Sachs (GS Quote) -- the self-described creme de la creme of investment banks -- doled out shares in hot initial public offerings to executives and directors at 21 investment banking clients. The committee, chaired by Republican Rep. Michael Oxley of Ohio, concludes that the evidence "shows preferred investors profited unfairly."

The firm takes issue with the findings, saying that it doesn't treat some clients better than others. But despite the outrage on both sides, longtime Wall Street watchers say they're hardly shocked by accounts of the practice, which many take as a given in a highly competitive business. ...