Massachusetts regulator subpoenas Goldman

BOSTON Aug 26 (Reuters) - Massachusetts' top securities regulator said on Wednesday his office is demanding information from Goldman Sachs Group Inc (GS.N) on how the investment bank passes on analysts' short-term trading tips to top clients.

William Galvin, Massachusetts' Secretary of State, said the subpoenas were sent recently and that Goldman has until around Sept. 7 to respond.

"We thought we solved this problem with the preferred customers years ago when we settled with Goldman Sachs on Wall Street research, but now we don't know," Galvin said.

Galvin said he was extremely concerned Goldman's analysts pass on their best ideas to traders and preferred clients during weekly meetings called "huddles."

"We have to make sure that there is confidence in research," Galvin said, noting it is critical to erase any sense of a two-tier system where some clients are favored over others.

Six years ago, Galvin was one of several regulators who negotiated a $1.4 billion settlement between 10 big Wall Street firms, including Goldman.

The firms were accused of sending out overly optimistic research to win investment banking business. (Reporting by Svea Herbst-Bayliss; editing by Andre Grenon)