SEC Gets Tough On Muni Conflicts With $12M Goldman Fine

Law360, New York (September 27, 2012, 8:28 PM EDT) -- By fining Goldman Sachs Group Inc. a record $12 million Thursday over an alleged pay-to-play scheme to secure municipal bond business, the U.S. Securities and Exchange Commission showed it won't tolerate coziness between Wall Street and government issuers, experts said.

In a first-of-its kind administrative action, the SEC accused Goldman of failing to disclose that an executive in its Boston office was working for the gubernatorial campaign of then-Massachusetts state treasurer Timothy P. Cahill between November 2008 and October 2010. During that time, the executive, Neil...
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