Tuesday, 22 July 2014
Last updated 21 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…