An investigation into leaked Federal Reserve documents that ledto the conviction of a former GoldmanSachs Group Inc. employee could lead to action against the bank, The New York Times reported July 25, citing"people briefed on the matter."
The SEC in June barredRohit Bansal from investment banking activity after he admitted receiving confidential information from a formerco-worker at the New York Fed to advance his career at Goldman Sachs.
The bank agreed to pay a $50 million fine to the New York StateDepartment of Financial Services and admitted to supervisory negligence.
The Fed is now preparing a case against Goldman Sachs, and thebank is expected to pay a penalty of less than $50 million, according to the Times report. The government is also preparingaction against a former bank executive who worked with Bansal in a more senior position,but he is expected to fight the case, the newspaper reported.
The report identified the second banker under investigation asJoseph Jiampietro, a managing director who oversaw Bansal.