Federal Reserve fines Goldman Sachs $36.3m for alleged disclosure violations
https://www.theguardian.com/business/2016/aug/03/federal-reserve-goldman-sachs-fine-363-million
Federal Reserve fines Goldman Sachs $36.3m for alleged disclosure violations
Wednesday 3 August 2016 22.38 BST Last modified on Wednesday 3 August 2016 22.43 BST
The Federal Reserve fined Goldman Sachs $36.3m for what it called the use and disclosure of confidential materials that the US uses in its supervision of banks. The Fed ordered the big Wall Street bank on Wednesday to put in place a program to ensure that the alleged violation doesnt happen again.
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Regulators say the confidential supervisory information obtained by Goldman included reports of bank examinations used by regulators. Goldman employees improperly used and disclosed the confidential information during presentations to clients and prospective clients in an attempt to get their business, they said.
Since at least 2012, Goldman employees lacked proper training and the company didnt have policies or procedures in place to ensure compliance with disclosure rules, according to the Feds order. The central bank said it will actively monitor Goldmans implementation of a compliance program. It prohibited Goldman from rehiring anyone involved in the alleged violation.
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