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Goldman Sachs to Pay $50 Million Fine Over Fed Info Leak

Goldman Sachs to Pay $50 Million Fine Over Fed Info Leak

According to sources, Goldman Sachs is close to reaching a $50 million settlement to put an end to New York Department of Financial Services (DFS) probe into an alleged leak of confidential information from a NY Federal Reserve Bank staff member to a former employee of the investment banking giant. According to sources, the now former Goldman employee previously worked at the NY Fed. Both the banker and the Fed Reserve staffer face criminal charges  of the leak.

A Goldman spokesman said the bank, back in September 2014, discovered  a “new junior employee” had obtained the confidential information from the New York Fed and immediately launched an investigation and notified its regulators. The firm fired the employee, along with a more senior staffer who “failed to escalate the issue,” soon after the bank’s discovery. According to a NY Times article, the Goldman employee, Rohit Bansal joined Goldman in mid-2014 as an associate after having spent seven years at New York Fed. The bank he received information on was one that he previously regulated, the newspaper’s report also said. 

In addition to the $50 million fine, the DFS settlement will ask Goldman to admit it failed to properly supervise Bansal. The accord also will impose restrictions on how Goldman obtains confidential information about banking clients in certain consulting deals.

The experienced securities litigation attorneys at Colling Gilbert Wright have litigated and resolved hundreds of FINRA arbitration claims, many involving Failure to Supervise allegations against broker/dealers.If you believe you lost money due to negligence or fraud on the part of your FINRA registered broker dealer, please contact us for a free case evaluation.