US Fed penalises Goldman Sachs for use of confidential supervisory information

Washington, Aug 4 (IANS) The US Federal Reserve on Wednesday ordered Goldman Sachs to pay $36.3 million of civil money penalty for its unauthorised use and disclosure of confidential supervisory information.

The Fed was also seeking to impose a fine on a former Managing Director at Goldman Sachs, Joseph Jiampietro, and permanently bar him from the banking industry for his and his subordinates' unauthorised use and disclosure of confidential supervisory information, said the Fed in a statement.

The Fed said that Goldman Sachs used the central bank's confidential supervisory information in presentations to its clients in order to solicit business.

The order required Goldman Sachs to implement an enhanced programme to ensure the proper use of confidential supervisory information, and prohibited the investment bank from re-employing individuals involved in the improper disclosure of such information.

In 2015, the Fed permanently barred a former Goldman Sachs employee from the banking industry following his guilty plea for the theft of confidential supervisory information.