Goldman hit with £17.5m fine from FSA

first_imgThursday 9 September 2010 8:42 pm Tags: NULL Goldman hit with £17.5m fine from FSA Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May Likebonvoyaged.com40 Dated Things That Show Your Agebonvoyaged.comhttps://alldelish.com44 Healthy Low-Carb Foods That Taste Incrediblehttps://alldelish.comDidUKnowUnsold 2018 SUVs Now Almost Being Given Away: See PricesDidUKnowRecetas Get5 Common Cancer Signs to Pay Attention ToRecetas GetSportPirateElle Macpherson Is Almost 60, Try Not To Smile When You See Her NowSportPirateSportinalRemember These Olympic Gymnasts? This Is How They Look NowSportinalBarxBuddyHow To Instantly Get A Dog To Stop BarkingBarxBuddyCakeHDThe Most Beautiful Women Of All TimeCakeHDLife Exact BrazilRemember Grace Jones? She Is Almost 73, See Her NowLife Exact Brazil whatsappcenter_img More From Our Partners Supermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comPuffer fish snaps a selfie with lucky divernypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse‘The Love Boat’ captain Gavin MacLeod dies at‘Neighbor from hell’ faces new charges after scaring off home whatsapp GOLDMAN SACHS has been slapped with a £17.5m fine for failing to tell the City regulator about a US investigation into Fabrice Tourre, the trader at the heart of a derivatives scandal.The Financial Services Authority (FSA) criticised the Wall Street titan for a breakdown in internal communication that meant Goldman’s American branch did not warn its UK office of the Securities and Exchange Commission (SEC) probe into Tourre’s role putting together a mortgage-backed security called Abacus. In turn, the UK division did not inform the watchdog. Tourre moved from New York to London midway through the SEC’s inquiry.The SEC accused Goldman of defrauding investors in Abacus by allowing John Paulson, a hedge fund manager, to help design its portfolio while planning to sell it short. Buyers including German bank IKB lost an estimated $1bn (£648m) when Abacus’ property loans turned toxic.Goldman settled the case for $550m in July, although Tourre denied any wrongdoing.Yesterday, the FSA said it did not find out Tourre had been served with a Wells Notice – which signifies US authorities’ intention to prosecute – until the SEC went public with its charges in April. The regulator chastised Goldman for “weaknesses” in its compliance routine.Enforcement director Margaret Cole said: “Goldman Sachs did not set out to hide anything, but its defective systems and controls meant the level and quality of its communications with the FSA fell far below what we expect of an authorised firm.”A Goldman spokesperson said: “We are pleased the matter is resolved.”The strength of the penalty, the second-largest the FSA has issued, was designed to embarrass the controversial investment bank. But analysts said it would have little impact on Goldman’s image in the UK.Stefano Harney, professor of strategy at Queen Mary, University of London, said: “This won’t do much damage. Just as Goldman’s huge bonus pools perversely enhance their reputation, judgements against them prove they’re at the cutting edge.”Shares in Goldman closed 1.1 per cent up at $149.14 in New York. KCS-content Show Comments ▼last_img

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