Hilarious! From The King Report via Ritholtz (emphasis mine):

We are stunned ? no, we?re shocked, shocked over the following admission from an Assistant US Attorney about the theft of Goldman?s proprietary trading codes.

BN: At a court appearance July 4 in Manhattan, Assistant U.S. Attorney Joseph Facciponti told a federal judge that Aleynikov?s alleged theft poses a risk to U.S. markets. Aleynikov transferred the code, which is worth millions of dollars, to a computer server in Germany, and others may have had access to it, Facciponti said, adding that New York-based Goldman Sachs may be harmed if the software is disseminated.

?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,? Facciponti said, according to a recording of the hearing made public today. [The prosecutor apparently does not understand the implications of his statement but most of The Street and much of the public do.] http://www.bloomberg.com/apps/news?pid=20601087&sid=ajIMch.ErnD4

Karl Denniger: Did Assistant US Attorney Facciponti make an erroneous statement, or did he just lay a nuclear egg on the table, step back, and set it off – on accident – admitting in open court that the software in question ?can be used to manipulate markets?? http://market-ticker.denninger.net/authors/2-Karl-Denninger

Zero Hedge: At least it is refreshing that none other than Goldman?s own de facto attorney admits that the firm has created a piece of code that permits ?market manipulation.?