A unit of Goldman Sachs Group Inc. (GS) was fined by the Central Bank of Ireland for breaching rules on counterparty risk assessment.
Goldman Sachs Bank (Europe) Plc was fined 160,000 euros ($218,000), the Dublin-based central bank said in an e-mailed statement today. The company incorrectly calculated its regulatory capital requirements between July 16, 2008 and Dec. 17, 2010, the central bank said.
“The reliance on automated systems should be tempered by adequate oversight to ensure that systems and controls are, and continue to be, comprehensive and proportionate,” Peter Oakes, director of enforcement at the central bank, said in an e-mail.
The error in working out the counterparty risk capital requirement didn’t result in any breach of the capital adequacy ratios, the central bank said. No counterparties were impacted. Goldman Sachs has taken remedial action to fix the breaches and the matter is closed, the central bank said.
The firm disclosed the errors in calculations to the central bank on Dec. 13, according to today’s statement.
“We are pleased this matter has been resolved,” Joanna Carss, a Goldman Sachs spokeswoman, in London, said today.
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