Goldman Sachs is ordered to pay $36.3M for alleged use of confidential information
Goldman Sachs has been ordered to pay $36.3 million for using confidential regulatory information from the Federal Reserve Board in client pitches.
The board imposed the fine on Wednesday, report Bloomberg News, Reuters, the Hill and CNBC. A press release is here.
The Federal Reserve Board alleges that a former Goldman Sachs executive, Joseph Jiampietro, pressured an employee who formerly worked at the Federal Reserve Bank of New York to obtain confidential information that he could use in pursuit of clients.
The board is also seeking to fine Jiampietro and to bar him from the banking industry. A lawyer for Jiampietro said in a statement that the Fed “has the law wrong and the facts wrong.” Jiampietro never requested confidential information and never used it for his or anyone else’s benefit, said lawyer Adam Ford. Jiampietro has sued Goldman Sachs for legal fees he has incurred in the investigation.
Goldman Sachs says in a statement that it immediately notified regulators after discovering the improperly obtained information, and it has since strengthened its policies and procedures.
