Goldman Sachs Internationals Fined $27 Million

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LONDON, UNITED KINGDOM (GaeaTimes.com)- After months of investigation, Goldman Sachs has been fined $27 million by The British securities regulator who have held that the investment banking service has failed to disclose details about Fabrice Tourre, a London-based trader at Goldman Sachs who was accused of fraud by the U.S. Securities and Exchange Commission back in April. It has been accused of lapses in communication both with itself and with its compliance officers.

The Financial Services Authority on Thursday said in a statement that Goldman Sachs International, the bank’s London-based unit did not have in place an effective procedure to make its department aware of the Securities and Exchange Commission investigation so that the F.S.A could consider whether any notifications as such was need to be made to the F.S.A. The Financial Services Authority maintains that it is the “weaknesses” in Goldman Sachs Internationals’ reporting controls that had led in the failure to provide the investigators with “appropriate information”. Goldman Sachs has reportedly failed to inform F.S.A that one of its employees, Fabrice Tourre, was under investigation for fraud being carried out by U.S.-based Securities & Exchange Commission. Fabrice Tourre has reportedly moved To London from New York to work while instigation against him was still on.

On Thursday, managing director of FSA enforcement and financial crime, Margaret Cole said that it is not that the Goldman Sachs Internationals in any way tried to hide anything from the F.S.A. but its defective systems have made the authorized firm’s quality of communication far below what was expected of it. The Goldman Sachs Internationals on its part maintained that it is “pleased the matter is resolved”.