Wednesday, 4 March 2015
Last updated 9 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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…