Goldman Sachs has been fined £17.5 million for failing to notify British regulators about a U.S. probe that led to a US$550 million settlement.
The Financial Services Authority levied the fine today. Fabrice Tourre, the Goldman executive accused by the SEC of orchestrating the collateralized debt obligation deal at the heart of the U.S. fraud case against the firm, is based in London. Goldman was accused of misleading investors in the CDO, which was allegedly structured and marketed on behalf of hedge fund Paulson & Co.
“Goldman Sachs International did no set out to hide anything, but its defective systems and controls meant that the level and quality of its communications fell far below what we expect of an authorized firm,” Margaret Cole, head of the FSA, said.
Goldman said it was happy to resolve the matter.