Investing firm Goldman Sachs fired several executives in its transaction banking unit after they violated the company’s communications policy, according to a memo cited by Reuters in a piece published Wednesday.
Though the memo did not list the individuals affected by Goldman Sachs’ decision, a source revealed to Reuters that head of transaction banking, Hari Moorthy, was among those who were relieved of their duties. The memo cited by the outlet shows that Goldman Sachs treasurer, Philip Berlinski, will take over day-to-day management of transaction banking alongside Akila Raman and Luc Teboul.
In addition to handling transaction banking, Berlinski is the interim head of Goldman Sach’s financial technology and consumer business, according to Reuters.
While Goldman Sachs refused to comment on “individual disciplinary matters,” the company stressed that it took its “communications policy seriously,” expecting all personnel to “comply with it,” the outlet stated.
Goldman Sachs’ communication policy requires that all employees use company-approved communications channels to conduct business, Reuters reported. In 2022, the Securities and Exchange Commission and the Commodity Futures Trading Commission imposed hefty fines on a dozen Wall Street banks — including Goldman Sachs — over employees’ use of mobile phones and messaging apps to transact business, according to Financial News London. (RELATED: Regulators Hit America’s Largest Bank With $200 Million Fine)
In January, Morgan Stanley reportedly fined its employees upwards of $1 million for violating its communications policies via the use of unauthorized messaging platforms to conduct business.