The investment bank is paying the price for a former associate violating banking laws.
The New York Department of Financial Services, who administered the $50 million fine, is also requiring Goldman Sachs to admit it failed to supervise its ex-employee, Rohit Bansal, when he reached out to contacts at the Federal Reserve Bank of New York to gain access to confidential regulatory information he later used in advising clients, Forbes reported yesterday (Oct. 28).
“We are pleased that Goldman Sachs has decided to resolve this matter and work with us to institute reforms that help prevent similar problems from occurring in the future,” Acting Superintendent Anthony J. Albanese said in a statement.
“This case underscores the critical need for financial institutions to put in place strong controls and policies for employee conflicts screening and the use of confidential regulatory information,” Albanese continued.
According to Forbes, Bansal was employed at the New York Federal Reserve Bank for nearly seven years before being hired by Goldman Sachs in July 2014.
While Bansal goes unnamed in the New York Department of Financial Services’ settlement, he has reportedly pled guilty to the charge of leaking the confidential documents. Bansal is accused of obtaining nearly 35 confidential documents on 20 different occasions for a former coworker at the New York Fed, Forbes confirmed, noting that the leaks reportedly took place in August and September 2014.
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