Financial Services Authority (FSA), which is the financial regulator of the United Kingdom, has fined the American investment bank, Goldman Sachs.
The penalized Company will have to give around £20 million, which is 31 million US dollars. The FSA for the first time has asked for such a hefty amount as fine.
The FSA has alleged that the banking firm didn’t tell it about the fraud, which an employee of the bank did, while working in the UK. The bank is ready to pay the penalty amount.
The officials of both the Companies have refused to comment on the issue. But it is evident that the bank didn’t apprise the regulator of the fraud.
According to the FSA, Goldman employee Fabrice Tourre cheated the customers regarding the mortgage-backed securities deal. The Securities and Exchange Commission in New York is investigation the case.
The fine imposed on the banking firm has tarnished its reputation, especially when it was proud of its staff members and considered them as ‘Masters of the Universe’.
Lloyd Blankfein, the Chief of the Goldman Sachs bank, has been accused of fooling the competitors and clients by using smart strategies.
The Obama Government is also very upset with the bank, because the financial firm refused to take any responsibility for the financial crisis that led to recession in the country.