British Regulators To Fine Goldman Following CDO Probe

Sep 9 2010 | 1:53am ET

Goldman Sachs is facing another fine in the wake of its US$550 million settlement with the U.S. Securities and Exchange Commission.

This time, it will be the U.K. Financial Services Authority slapping the Wall Street giant. The British regulator is poised to levy a fine of less than £20 million fine following a five-month probe sparked by the SEC’s April fraud lawsuit against Goldman.

Unlike the SEC case, the FSA fine will not be specifically based on the collateralized debt obligation deal at the heart of the SEC case, the Financial Times reports. Goldman was accused of misleading investors in the CDO, called ABACUS-AC-1, which it allegedly structured and marketed on behalf of hedge fund Paulson & Co.

But the FSA did find that Goldman failed to properly notify it about the SEC probe and about the SEC’s interest in Fabrice Tourre. Tourre, the Goldman vice president most directly involved in the deal, was the only individual sued by the SEC, and is based in London. Tourre has not settled the SEC charges against him, and has vowed to fight the regulator.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of