Date
27 May 2017
Goldman Sachs has reiterated that it won’t tolerate any illegal practices by its staff. Photo: Bloomberg
Goldman Sachs has reiterated that it won’t tolerate any illegal practices by its staff. Photo: Bloomberg

Former Goldman employee pleads guilty over NY Fed leaks

An ex-Goldman Sachs Group employee has pleaded guilty to illegally obtaining confidential information from a former colleague at the Federal Reserve Bank of New York.

Rohit Bansal, a former associate at Goldman Sachs, pleaded guilty Thursday to a misdemeanor charge of theft of government property, Reuters reported.

“I accept full responsibility for my actions and am deeply sorry for what I’ve done,” Bansal was quoted as saying at the plea hearing.

He is scheduled to be sentenced on March 9. According to the report, he faces up to a year in prison.

Following the plea, the Federal Reserve Board of Governors announced that Bansal would be permanently banned from the banking industry.

Bansal’s plea came a day after Jason Gross, a former bank examiner at the New York Fed, likewise pleaded guilty and admitted to providing confidential information to Bansal.

According to prosecutors and New York regulators, Bansal, 30, obtained documents from Gross on several occasions after joining Goldman Sachs in July 2014.

Those documents included some pertaining to examinations of a bank that Goldman was advising about a potential transaction.

Goldman has said that after discovering Bansal obtained the confidential supervisory information, it fired him and a more senior employee who failed to handle the issue properly.

Bansal’s plea came days after Goldman Sachs reached a related US$50 million settlement with the New York Department of Financial Services.

As part of that settlement announced on Oct. 28, Goldman admitted to failing to supervise for banking law violations.

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CG/RC

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