Federal Reserve fines Goldman Sachs $36.3m after document leak

United States investment bank Goldman Sachs has been fined $36.3m by the Federal Reserve following accusations that it obtained documents from the US central bank for its own benefit.

The Fed said that Goldman employees used confidential information in order to solicit clients, including former managing director Joseph Jiampietro.

Starting in 2012, Jiampietro, an investment banker who formerly worked at the Federal Deposit Insurance Corp, received bank regulators’ unauthorized supervisory information and used it for his work at Goldman Sachs, according to the Fed.

The offences are said to have taken place between February 2012 and October 2014, a period when Jiampietro was apparently under pressure from Goldman to generate higher revenues.

The charges made by the Fed also mention its former employee Rohit Bansal who collaborated with Jiampietro in the incident.

"In August and September, Bansal and Jiampietro used the non-public ERM framework in at least five pitches to potential and existing clients," the Fed said.

Both men were promptly fired by the bank, but the Federal Reserve still alleged wrongdoing on its part. Goldman Sachs cooperated with the investigation and agreed to pay the $36.3m enforcement action.

"We're pleased to have resolved this matter. Upon discovering that Rohit Bansal had improperly obtained information from his former employer, the Federal Reserve Bank of New York, we immediately notified regulators, including the Federal Reserve," Goldman said in a statement.

"We have no tolerance for the improper handling of confidential supervisory information," it continued.

Bansal has been barred from the banking industry, and the Fed is demanding a $337,500 penalty from Jiampietro as punishment.