When it acts as a market-maker, Goldman’s job is to create transactions for willing buyers and sellers. It is not to advise investors. A better analogy might be real estate brokers. They are not required to tell clients that, no, they wouldn’t buy that house; they just do the transaction. And like Goldman, real estate brokers can work both ends of a deal. Is a client wise to accept that? Maybe not. But is it illegal, unethical or unusual in investment banking? No.
Playing Devil’s Advocate?