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Goldman Sachs worker likely faces jail amid rare criminal charges for a banker

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A Goldman Sachs banker is expected to be jailed over the leaking of confidential information from the Federal Reserve Bank of New York, the investment banker’s former employer.

Federal prosecutors are preparing to this week announce criminal charges against the banker, Rohit Bansal, and an employee of the regulator, according to the New York Times .

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Related: Fed vice-chair: interest rate increase is ‘expectation, not commitment’ for 2015

Lawyers for the men, who were both fired in the wake of the leak, are said to be hammering out a deal with prosecutors. Even if they agree on the plea deal, they are likely to face up to a year in jail.

It is rare for criminal charges to be brought directly against bankers in the US, but attorney general Loretta Lynch has set out new guidelines designed to ensure that more executives, bankers and other businesspeople are held personally accountable for their actions.

Under the planned deal, Goldman would not face criminal charges but would pay a fine of as much as $50m and would be forced to admit that it failed to properly supervise Bansal.

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A spokesman for Goldman said: “Upon discovering that a new junior employee had obtained confidential supervisory information from his former employer, the Federal Reserve Bank of New York, we immediately began an investigation and notified the appropriate regulators, including the Federal Reserve.

“That employee and a more senior employee who failed to escalate the issue, were terminated shortly thereafter. We have zero tolerance for improper handling of confidential information. We have reviewed our policies regarding hiring from governmental institutions and have implemented changes to make them appropriately robust.”

The case highlights the dangers of a revolving door between banks and regulators. Bansal had spent seven years at the New York Fed before joining Goldman, where he advised one of the same banks he had previously regulated. Bansal received the documents from Jason Gross, a former colleague and friend at the New York Fed. Gross also faces criminal charges.

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The Department of Justice and the Fed declined to comment on the case.

guardian.co.uk © Guardian News and Media 2015

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… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

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Trump aides desperately try to downplay ‘order’ to US companies to leave China

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Donald Trump's top aides on Sunday downplayed the idea of US companies being forced to abandon China any time soon, as an edict from the president ordering businesses to start looking for alternatives has been met with skepticism.

Treasury Secretary Steven Mnuchin and White House economics advisor Larry Kudlow took to the airwaves from France, where Trump is participating in the G7 summit, to smooth out tensions in the business community prompted by Trump's Friday tweet.

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At the G7 summit in Biarritz, France, Trump announced a major trade deal with Japan and promised more of the same with Britain, once Brexit is done.

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G7 wrestles with Iran, Amazon fires and trade, but own unity shaky

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G7 leaders close their summit Monday with discussion of world problems including the fires ravaging the Amazon rainforest, but overshadowed by President Donald Trump's trade wars and questions over the group's unity.

The summit in Biarritz, a high-end surfers' paradise in southwestern France, saw a dramatic shift of focus Saturday when Iranian Foreign Minister Mohammad Javad Zarif flew in to discuss the diplomatic deadlock on Tehran's disputed nuclear programme.

Zarif's presence had not been expected and it represented a gamble by French host Emmanuel Macron who is seeking to soothe spiralling tensions between Iran and the United States.

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