Goldman Sachs could face a $50 million fine in a regulatory leak case

An ex-Goldman Sachs employee hired last year from the Federal Reserve may be charged in a leak investigation, according to a story from the New York Times on October 26.

The Times’ story says the New York Department of Financial Services is expected to levy a $US50 million fine on Goldman Sachs in the incident.

It stems from former Goldman banker Rohit Bansal, who received information from someone he knew at the Federal Reserve Bank of New York after joining the investment bank in 2014. That information was then circulated at Goldman Sachs.

A Goldman Sachs spokesman said: “Upon discovering that a new junior employee had obtained confidential supervisory information from his former employer, the Federal Reserve Bank of New York, we immediately began an investigation and notified the appropriate regulators, including the Federal Reserve.

“That employee and a more senior employee who failed to escalate the issue, were terminated shortly thereafter. We have zero tolerance for improper handling of confidential information. We have reviewed our policies regarding hiring from governmental institutions and have implemented changes to make them appropriately robust.”

Both the Federal Reserve Bank of New York and the US Department of Justice declined to comment when contacted by Business Insider.

To read the full The New York Times article click here.

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