Rumor: SEC, Goldman to settle research case for $22 million: sources Reuters

 

"Exclusive: ... the settlement has not yet been made public."

Symbol	Price	Change
GS	115.93	0.00

SEC, Goldman to settle...

By Sarah N. Lynch and Aruna Viswanatha

 

WASHINGTON (Reuters) - U.S. securities regulators are preparing to announce that Goldman Sachs will pay $22 million to settle allegations the bank did not have adequate policies to prevent research from being passed inappropriately to preferred clients...

The Securities and Exchange Commission's case against Goldman is expected to be similar to one that the bank settled last year with Massachusetts securities regulators, several sources told Reuters.

The $22 million penalty will resolve charges by both 

- the SEC and 

- the Financial Industry Regulatory Authority...

... the settlement has not yet been made public.

The expected SEC settlement and the prior Massachusetts settlement come after a major 2003 settlement with Goldman and other Wall Street firms over conflict-of-interest allegations involving their research analysts.

The banks in 2003 collectively paid $1.4 billion to resolve claims that they issued overly optimistic research on companies to win their investment banking business.

Improper relationships between research and investment banking was again at issue in the 2011 Massachusetts settlement, when Goldman agreed to stop organizing private meetings of traders and stock analysts, known as "huddles."

Read More @ Source:

 http://finance.yahoo.com/news/exclusive-sec-goldman-settle-research
(Reporting By Sarah N. Lynch and Aruna Viswanatha; Editing by John Mair)