Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Brits Set To Levy Fine Against Goldman Sachs For CDO Biz

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The UK’s financial regulator is set to levy a near-record fine on Goldman Sachs , the Financial Times is reporting.

The Goldman Sachs booth on the floor of the New York Stock Exchange
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The FT reports:

The FSA opened its investigation into the bank in April after the SEC charged Goldman with misleading investors in a complex mortgage-backed security known as Abacus. The SEC claimed that Goldman had failed to disclose that a hedge fund that was betting against the security had selected some of the mortgage loans included in the portfolio, costing investors as much as $1bn.

The largest fine handed down by the UK regulator came three months ago, when JPMorgan paid a £33.3m for failing to keep client money in separate accounts.

Goldman Now Faces Large Fine In UK(Financial Times)