Goldman Sachs was fined $36 million Wednesday for illegally obtaining documents from the Federal Reserve Bank of New York.
Intensifying a long-running investigation, Goldman Sachs was forced to pay $36.3 million originating from a 2014 incident where a junior banker received information from a New York Fed employee, reports the New York Times. Both individuals pleaded guilty to accusations, and Goldman payed some $50 million in fines to New York State regulators.
The Fed is also imposing a $337,500 fine and “permanent banking ban against a former Goldman Sachs managing director, Joseph Jiampietro, over his unauthorized use and disclosure of Fed secrets,” reports Bloomberg.
There are, however, many interesting nuances to this case.
The first is that the Fed chose not to pursue action against the company at the time, but is now actively pursuing the case two years after the incident occurred. The second cites Goldman for “unauthorized use and disclosure of confidential supervisory information,” when the incident stems from a Fed employee’s wrongdoing. Furthermore, the Goldman employee implicated in the case was a former Fed employee and it was Goldman that uncovered the leak, reports the New York Times.
The Fed stated the leaked information contained reports on bank audits and other very confidential information regarding regulations.
This case is an example of the Fed’s recent efforts “to adopt a tougher stance against Wall Street misconduct and crackdown on individual bankers.”
Goldman is required as part of the it’s settlement with the central bank to “enhance its program for preventing its employees from soliciting or accepting leaked regulatory information,” reports the New York Times.
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