Fed Takes Action Against Goldman Over NY Fed Leak: NYT Reports

Goldman Sachs Faces Federal Enforcement Action Over Information Leak

The U.S. Federal Reserve is set to initiate enforcement action against Goldman Sachs Group Inc. regarding the unauthorized disclosure of confidential government information involving one of its employees, according to a report by the New York Times.

This enforcement action is expected to include a penalty of less than $50 million. The Fed is also contemplating measures against a former Goldman executive who had access to the leaked information.

The developments come two years after it was revealed that a New York Fed employee, Jason Gross, had leaked sensitive data to Goldman banker Rohit Bansal. Both Gross and Bansal pleaded guilty to theft of government property in November.

Additionally, Goldman Sachs has already incurred a $50 million penalty from New York’s Department of Financial Services in relation to this matter.

On Monday, Goldman Sachs announced that the employee involved in the leak and a supervising senior manager who failed to address the situation have been terminated. The firm also stated that it initiated an investigation promptly after discovering the leak and notified the relevant regulators.

The U.S. Federal Reserve has not provided any comments regarding the situation.