- Banker allegedly passed on e-mail from a Fed employee
- Banker, supervisor were fired, Goldman said last year
Goldman Sachs Group is poised to settle allegations that one of its employees took confidential documents from the Federal Reserve in a deal that will cost it $50 million and restrict its ability to advise New York-based banks for the next three years, according to people briefed on the matter.
As part of the settlement, a former Goldman Sachs employee as well as a former Fed staffer are expected to plead guilty to misdemeanor charges, according to the people, who asked not to be identified because the deal isn’t done.
The conduct at issue took place in September 2014 when a Goldman Sachs banker, Rohit Bansal, allegedly forwarded an e-mail to members of his team from Jason Gross, an employee at the Fed, that contained confidential information. Prior to joining Goldman Sachs, Bansal had worked with Gross at the Federal Reserve Bank of New York.
Sean Casey, an attorney for Bansal, and Bruce Barket, an attorney for Gross, didn’t respond immediately to requests for comment.
Once Goldman Sachs management learned of the matter, the bank began an internal investigation and alerted regulators, the company said in an e-mailed statement Monday. It fired Bansal and a supervisor, according to the statement.
"We have zero tolerance for improper handling of confidential information," Goldman Sachs said. "We have reviewed our policies regarding hiring from governmental institutions and have implemented changes to make them appropriately robust.”
As part of the settlement, Goldman Sachs will pay $50 million to New York’s Department of Financial Services and admit that it failed to supervise Bansal, the people said. The bank will also agree to a 36-month ban on any consulting arrangement that requires access to confidential supervisory information from the state regulator, according to the people.
James Margolin, a spokesman for Manhattan U.S. Attorney Preet Bharara, declined to comment. Ciara Marangas, a spokeswoman at New York’s Department of Financial Services, also declined to comment. The New York Times reported the case earlier.