Melissa Klein Aguilar – Compliance Week – August 3, 2010
Corporate America has been buzzing about Goldman Sachs’ recent settlement of fraud charges with the Securities and Exchange Commission for all sorts of reasons. One provision in particular, however, should make compliance executives take notice: the SEC’s insistence that Goldman’s top compliance officer certify the Wall Street bank’s good behavior.
That detail is stated three-quarters through the eight-page settlement, filed by Goldman and the SEC on July 15. The agreement ends fraud charges the SEC filed earlier this year, alleging that Goldman Sachs misled investors of a collateralized debt obligation offering that was essentially designed to fail. Goldman also agreed to pay $550 million in disgorgement and penalties—the largest SEC fine ever against a Wall Street bank, although it’s still a drop in the well compared to Goldman’s multi-billion dollar quarterly profits.
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