Goldman Sachs Group Inc. has agreed to pay $36.3 million to settle allegations by the Federal Reserve that it obtained and used confidential regulatory materials from the central bank two years ago. The Board's order requires Goldman Sachs to put in place an enhanced program to ensure compliance with Board regulations concerning the receipt, use, and dissemination of confidential supervisory information.
Regulators say the "confidential supervisory information" obtained by Goldman included reports of bank examinations used by regulators.
The Fed charges stated that "a Firm employee engaged in the criminal theft of confidential supervisory information of the Board of Governors and other banking regulators", taking this information and disseminating it among numerous employees and potential clients.
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Both Mr Jiampietro and Mr Bansal were sacked after another colleague reported the incident to the compliance department. The documents were subsequently used to advise bank clients.
Goldman Sachs has already paid NY regulators $50m over the same incident.
"We're pleased to have resolved this matter".
"Upon discovering that Rohit Bansal had improperly obtained information from his former employer, the Federal Reserve Bank of NY, we immediately notified regulators, including the Federal Reserve", Michael DuVally, a Goldman Sachs spokesman, said in a statement Wednesday. It is illegal to use or disclose confidential supervisory information without prior approval of the appropriate banking regulator. It also said it reviewed and strengthened its policies after Bansal was sacked.
The Fed also accused Goldman of not having proper policies and procedures in place since 2012 to comply with laws that prohibit the disclosure of confidential documents.
"The Board expects all firms, including Goldman Sachs, to comply with all US laws, rules, and regulations", the central bank said in a statement announcing the actions.