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Ex-Goldman Banker and Fed Employee Will Plead Guilty in Document Leak
Key Excerpts from Article on Website of New York Times
Posted: November 1st, 2015
http://www.nytimes.com/2015/10/27/business/dealbook/criminal...
A former Goldman Sachs banker suspected of taking confidential documents from a source inside the government has agreed to plead guilty, a rare criminal action on Wall Street, where Goldman itself is facing an array of regulatory penalties over the leak. The banker and his source, who at the time of the leak was an employee at the Federal Reserve Bank of New York, one of Goldmans regulators, will accept a plea deal from federal prosecutors that could send them to prison for up to a year. Under a tentative deal ... Goldman would pay a fine of $50 million. For Goldman and the New York Fed, the case is likely to give new life to an embarrassing episode that illustrated the blurred lines between their institutions. Perhaps more than any other bank, Goldman swaps employees with the government, earning it the nickname Government Sachs. While the so-called revolving door is common on Wall Street, the investigation [affirms] the publics concerns that regulators and bankers, when intermingled, occasionally form unholy alliances. The Goldman banker, Rohit Bansal, previously spent seven years as a regulator at the New York Fed.
Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.
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