Goldman Fined $50 Mln For NY Fed Data Theft

(RTTNews) - Goldman Sachs Group (GS) has agreed to pay a $50 million fine in order to settle allegations that one of its employees took confidential documents from the Federal Reserve.

The New York State Department of Financial Services also said that as part of the enforcement action, Goldman has accepted a three-year voluntary abstention from accepting new consulting engagements.

The problem started when in September 2014 when Rohit Bansal, a Goldman Sachs banker and a former Federal Reserve employee, allegedly forwarded an e-mail to members of his team from Jason Gross, an employee at the Fed, that contained confidential information.

Goldman Sachs also admitted that its employee engaged in the criminal theft of Department confidential supervisory information and its management failed to effectively supervise its employee to prevent this theft from occurring.

Acting Superintendent Albanese said: "We are pleased that Goldman Sachs has decided to resolve this matter and work with us to institute reforms that help prevent similar problems from occurring in the future. This case underscores the critical need for financial institutions to put in place strong controls and policies for employee conflicts screening and the use of confidential regulatory information."

GS closed Wednesday's trading at $191.32, up $5.01 or 2.69%, on the NYSE. The stock further gained $0.12 or 0.06% in the after-hours trade.