Thursday, September 9, 2010

Goldman Sachs fined $27 million: largest fine in SEC history

"LONDON — Britain's financial regulator hit Goldman Sachs International with a 17.5 million pounds ($27 million) fine on Thursday for failing to notify U.K. authorities about an investigation in the United States.
It was the second-largest fine ever imposed by the Financial Services Authority, eclipsed only by the 33.32 million pounds fine announced in June against J.P. Morgan Securities Ltd. for mishandling clients' funds.

The British agency's investigation began in April after the U.S. Securities and Exchange Commission filed civil fraud charges against Goldman Sachs for allegedly misleading buyers of complex mortgage-related investments in 2007. Goldman settled the charges in mid-July by agreeing to pay $550 million — the largest penalty against a Wall Street firm in the SEC's history."

additionally the article mentioned this: "GSI did not set out to hide anything, but its defective systems and controls meant that the level and quality of its communications with the FSA fell far below what we expect of an authorized firm," Cole said.

NOTE:  Banks misleading people and corporations? Say it isn't so. Is the  Largest Fine in history  too little? 

Read full article by clicking on title link.

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