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Federal Reserve Said to Fine Goldman Sachs In Confidential Leak Case

Goldman Sachs Hands Clients Losses In 'Top Trades'Goldman Sachs Hands Clients Losses In 'Top Trades'

The U.S. Federal Reserve is preparing an enforcement action against Goldman Sachs Group related to a leak of confidential government information to one of its employees, the New York Times reported on Monday.

The action will include a penalty of less than $50 million, the Times said, citing people briefed on the matter.

The Fed is also considering taking action against a former Goldman executive who had access to the leaked material, according to the Times, which did not name the former executive.

The Fed penalty would come two years after revelations that an employee at the New York Fed, Jason Gross, had leaked sensitive information to a Goldman banker named Rohit Bansal. Gross and Bansal pleaded guilty to theft of government property in November.

Goldman (GS) has already paid a $50 million penalty to New York’s Department of Financial Services related to the issue.

Goldman Sachs said on Monday the employee and the senior who failed to escalate the issue were terminated.

The company said it had started an investigation and appropriate regulators were notified as soon as the company learned about the leak.

The U.S. Federal Reserve declined to comment.