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Goldman Sachs fined record £20m by FSA
Business Digest: Wall Street bank failed to tell FSA it was under investigation in the US
Wall Street giant Goldman Sachs has been fined a record £20m by the UK City regulator, the Financial Servies Authority (FSA).
Goldman is being punished for failing to tell the FSA that it was under investigation for fraud by the US financial watchdog the Securities and Exchange Commission (SEC), a case that ended in July with the investment bank paying a settlement of $550m (£356m).
The charges brought by the SEC concerned the bank's marketing of complex mortgage investments just as the US housing market faltered.
The FSA said Goldman also did not tell them that Fabrice Tourre, the trader who helped create these mortgage derivatives, was under investigation. The £20m fine is the heaviest ever imposed by the City watchdog.
Read a full report at BBC News
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Twenty million pound fine, wow that is really socking it to them, that sure is going to make them hurt.