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Goldman Said to Prepare Volcker Defense for $250 Million Trader

  • Compliance staff said to review Thomas Malafronte’s trades
  • Bank said to gather evidence, conclude trades obey U.S. rules
Goldman Sachs Group headquarters in New York.
Photographer: Ron Antonelli/Bloomberg

Goldman Sachs Group Inc. has conducted an internal review of transactions made by an employee who generated $250 million trading junk bonds, finding that they didn’t violate a ban on buying and selling for the bank’s own account, according to people with knowledge of the firm’s actions.

The bank’s compliance staff pored over Thomas Malafronte’s trades to ensure the company could defend them against regulatory scrutiny, according to two of the people, who asked to remain anonymous discussing the confidential examination. Tiffany Galvin, a spokeswoman for the New York-based bank, declined to comment on the review or any inquiries received.