Goldman Fined Over Paulson Case Disclosure

Nov 9 2010 | 3:53pm ET

For the second time, Goldman Sachs is being fined for being a little too secretive about the collateralized debt obligation investigation that eventually cost the firm $550 million.

The Financial Industry Regulatory Authority imposed a $650,000 levy against Goldman for failing to update its records with the regulator within 30 days of learning it was the subject of a Securities and Exchange Commission probe. According to FINRA, Goldman learned of the SEC investigation last year when it received a Wells notice, but didn't inform FINRA until two weeks after the SEC filed its lawsuit against the firm in April.

"Goldman's failures impacted the ability of FINRA and other securities regulators to discharge their registration, examination and oversight duties," James Shorris, acting enforcement director at FINRA, said.

Last month, British regulators fined Goldman about US$27 million for failing to properly notify the Financial Services Authority about the SEC probe and the U.S. regulator's interest in London-based executive Fabrice Tourre, the only individual sued by the SEC in the case.

In July, Goldman agreed to pay $550 million to settle the SEC allegations that it misled investors in a CDO allegedly structured and marketed on behalf of hedge fund Paulson & Co. Tourre is still fighting those charges.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note