Goldman Sachs Fined $30.9 Million in UK: Report

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Reuters

Goldman Sachs Fined $30.9 Million in UK: Report

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Traders work in the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2010. Goldman Sachs has been fined 20 million pounds ($30.9 million) by the UK's financial regulator for failing to disclose it was under fraud investigation by its U.S. counterpart, the BBC reported on Wednesday. (REUTERS/Brendan McDermid)

LONDON - Goldman Sachs has been fined 20 million pounds ($30.9 million) by the UK's financial regulator for failing to disclose it was under fraud investigation by its U.S. counterpart, the BBC reported on Wednesday.

The Financial Services Authority (FSA) and Goldman Sachs declined to comment.

The FSA launched an investigation into the U.S. investment bank in April after the U.S. Securities and Exchange Commission charged Goldman with civil fraud for misleading investors in a mortgage-backed security known as Abacus.

The BBC, without citing sources for its information, said Goldman Sachs failed to disclose that Fabrice Tourre, the trader who helped create the mortgage derivatives, was under investigation.

The Financial Times reported that the fine could be announced by the Financial Services Authority as early as Thursday morning.

The biggest fine handed down by the FSA was a record 33.2 million pound fine against JPMorgan three months ago for failing to keep client money in separate accounts, according to the Financial Times.

(Reporting by Karolina Tagaris; Editing by Bernard Orr)

 

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