Quantcast
Connect with us

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

Published

on

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 .

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.

ADVERTISEMENT

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.

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

guardian.co.uk © Guardian News and Media 2015

Report typos and corrections to [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Facebook

Russians to prod Putin on poverty and his personal life as his ratings tank

Published

on

Russians are set to ask President Vladimir Putin about growing poverty at home and tensions abroad during an annual televised phone-in Thursday, which comes following a fall in his approval ratings.

The leader is also likely to face a degree of grilling on his personal life, according to questions submitted by the public online ahead of the live show.

Set to be held for the 17th time since Putin came to power in 1999, the show starts at 0900 GMT and usually lasts several hours.

Ahead of the carefully choreographed show, more than one million questions had been submitted, organisers told Russian news agencies.

Continue Reading

Facebook

Trump could turn on Hope Hicks just like Michael Cohen: Trump family biographer warns

Published

on

Trump family biographer Emily Jane Fox explained that she didn't think that the president would turn on long-time aide Hope Hicks, but then again, it was the same thought about Michael Cohen as well.

In a panel discussion about Hicks' testimony during MSNBC's Brian Williams' Wednesday show, Fox recalled that Micahel Cohen once said that he would take a bullet for the president. Once it appeared that Trump would throw him under the bus, Cohen began looking for a way out.

The same scenario seems to be happening with Hicks now.

"She works at new Fox, which is a company run by a Murdoch son," Fox said. "It's a company that's brand new. She's the head of communications there. And there are shareholders who would take issue with the fact that a senior member of this company is being put in this situation and being thrust on the world stage."

Continue Reading
 

Facebook

Trump jumped to Speaker Pelosi’s defense in marathon Fox News interview

Published

on

In a strange twist, President Donald Trump appeared to defend House Speaker Nancy Pelosi (D-CA) during an interview with Fox News host Sean Hannity Wednesday.

Hannity began by saying to Trump that he believes Pelosi has lost control of her own party, as officials like Reps. Alexandria Ocasio-Cortez (D-NY) and Ilhan Omar (D-MN) continue to call for impeachment.

"I say Nancy Pelosi is the speaker in name only," Hannity told Trump, calling Ocasio-Cortez the real start.

But what Trump said was the unusual point.

"I think Nancy Pelosi probably has control of it, I hear different things, but I think she does," Trump said, appearing to defend the Speaker. "She knows what she's doing. We will see how it all comes out."

Continue Reading
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

I need your help.

Investigating Trump's henchmen is a full time job, and I'm trying to bring in new team members to do more exclusive reports. We have more stories coming you'll love. Join me and help restore the power of hard-hitting progressive journalism.

TAKE A LOOK
close-link

Investigating Trump is a full-time job, and I want to add new team members to do more exclusive reports. We have stories coming you'll love. Join me and go ad-free, while restoring the power of hard-hitting progressive journalism.

TAKE A LOOK
close-link