Margaret Cole, the FSA's managing director of enforcement and financial crime, said: "We have repeatedly stressed the importance of firms self-reporting regulatory issues to the FSA in a timely way. GSI did not set out to hide anything, but its defective systems and controls meant that the level and quality of its communications with the FSA fell far below what we expect of an authorised firm.
"This penalty should send a message -- particularly to the senior management of large institutions -- of the need to have their firm's UK reporting obligations at the forefront of their minds," she said.
Fiona Laffan, Goldman spokeswoman, said, "We are pleased the matter is resolved." Goldman received a discount for settling the case at an early stage. Without it, the fine would have been £25m.
Mr Tourre's attorney did not respond to a request for comment.
The fine is the third largest in FSA history. JP Morgan set the record in June when it paid £33.3m ($51m) for failing to keep client money in separate accounts.
The FSA opened its investigation into Goldman in April after the SEC filed its charges. 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.
No comments:
Post a Comment