Tuesday, May 4, 2010

DAILY GOLDMAN SQUID REGULATORY TALLY

REUTERS--Goldman Sachs Group Inc's market-making unit has been censured and fined $450,000 after U.S. regulators found hundreds of violations in its processing of customer trades involving equity securities.

NYSE Regulation, a unit of NYSE Euronext, imposed the penalty. It said half the penalty will be paid to the U.S. Treasury in connection with related U.S. Securities and Exchange Commission civil proceedings.

According to NYSE Regulation, between Dec. 9, 2008, and Jan. 22, 2009, Goldman Sachs Execution & Clearing LP roughly 385 times accepted orders to "short" equity securities in which it had open "fail-to-deliver" positions, without first borrowing or arranging the borrow the securities as collateral.

The exchange's in-house regulator also said the Goldman unit failed about 68 times over that period to timely close out "fail-to-deliver" positions in equity securities or notify customers about such lapses. NYSE Regulation also found supervisory violations from Sept. 24, 2008 to Jan. 22, 2009.

Goldman's fine was announced Tuesday, less than three weeks after the U.S. Securities and Exchange Commission filed a civil fraud lawsuit against the investment bank in an unrelated case.

1 comment:

  1. And may they go after all of these banksters.

    ReplyDelete