how can I fix oil venting into the radiator? on 2001 BMW 325i

When I was checking the radiator I found oil in the water. I checked and sure enough it appears as if the engine is venting oil into the radiator from someplace. Any ideas? A friend suggested it my be an oil cooler gone bad, there is no water in the engine The car doesn't smoke to I don't believe it is a head gasket, Any thoughts?

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