The US Federal Reserve Board has slapped Goldman Sachs with a $36.3 million fine for its unauthorised use of confidential information in presentations to clients.
Goldman Sachs has been ordered to implement an “enhanced programme to ensure the proper use of confidential supervisory information”, the Federal Reserve said.
Joseph Jiampietro, a former managing director at Goldman Sachs, was caught out using the information and could be permanently banned from financial services.
The Federal Reserve found Jiampietro used the information in client presentations “in an effort to solicit business for the firm.”
Goldman Sachs did not have sufficient processes, training or policies to ensure employees are compliant with rules on the use of information.
In a statement, the Federal Reserve Board said it expects all firms to comply with US regulations, including Goldman Sachs.
“The board of directors of Goldman Sachs must ensure that its senior management implements an effective compliance risk management framework,” the Reserve said.
It added, “potential compliance risk failures are appropriately brought to the attention of senior managers and addressed immediately.”
This is not the first time Goldman Sachs has been caught out using unauthorised documents.
The Federal Reserve banned an employee at the US bank in November 2015, after he pled guilty to the theft of confidential information.