SEC, NYSE Fine Goldman For Supervisory Failures

Law360, New York (March 14, 2007, 12:00 AM EDT) -- Goldman Sachs Group Inc. will pay $2 million to settle enforcement proceedings with the U.S. Securities and Exchange Commission and the NYSE Regulation Inc. after both regulators found that the bank’s customers had carried out an illegal trading scheme, the SEC said Wednesday.

The SEC and the NYSE alleged that several of Goldman’s customers engaged in illegal short selling, shorting a stock days before a company was scheduled to have a public offering.

The regulators found that Goldman’s clearing arm, Goldman Sachs Execution and Clearing LP,...
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