UK agency fines Goldman Sachs $27 million for failure to notify about US investigation
By APThursday, September 9, 2010
UK agency fines Goldman Sachs $27 million
LONDON — Britain’s financial regulator has hit Goldman Sachs & Co. with a 17.5 million pounds ($27 million) fine for failing to notify U.K. authorities about an investigation in the United States.
The British agency’s investigation began in April after the U.S. Securities and Exchange Commission filed civil fraud charges against Goldman Sachs for allegedly misleading buyers of complex mortgage-related investments in 2007. Goldman settled the charges in mid-July by agreeing to pay $550 million — the largest penalty against a Wall Street firm in the SEC’s history.
The mortgage securities at issue in the SEC case cost two European banks that bought them nearly $1 billion while allegedly helping Goldman client Paulson & Co., a hedge fund, capitalize on the housing bust by betting on them to fail.
