Goldman Fined Over Paulson Case Disclosure

Nov 9 2010 | 4:53pm 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: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.