11/5/15, "Ex-Goldman Employee Pleads Guilty Over NY Fed Leaks," Reuters, by Brendan Pierson and Nate Raymond
"A former Goldman Sachs Group Inc employee pleaded guilty on Thursday
to illegally obtaining confidential information from a former colleague
at the Federal Reserve Bank of New York.
Rohit Bansal, a former associate at Goldman Sachs, pleaded guilty to a
misdemeanor charge of theft of government property, days after Goldman
Sachs reached a related $50 million settlement with the New York
Department of Financial Services.
"I accept full responsibility for my actions and am deeply sorry for
what I've done," a visibly emotional Bansal said at the plea hearing. Bansal is scheduled to be sentenced on March 9. He faces up to a year in prison.
Following the plea, the Federal Reserve Board of Governors announced
that Bansal would be permanently banned from the banking industry.
Bansal's plea came a day after Jason Gross, a former bank examiner at
the New York Fed, likewise pleaded guilty and admitted to providing
confidential information to Bansal, who had previously worked with him
as a supervisory manager.
The case highlighted the so-called revolving door on Wall Street, in
which regulators take new jobs at the banks they formerly oversaw.
According to prosecutors and New York regulators, Bansal, 30,
obtained documents from Gross on several occasions after joining Goldman
Sachs in July 2014.
Those documents included some pertaining to examinations of a bank
that Goldman was advising about a potential transaction, regulators
Bansal shared some of the documents with others at Goldman,
regulators and prosecutors said, telling them in at least one instance,
"Please don't distribute."
Goldman has said that after discovering Bansal obtained the
confidential supervisory information, it notified regulators and fired
him and a more senior employee who failed to escalate the issue. The New
York Fed also fired Gross.
As part of its $50 million settlement announced on Oct. 28, Goldman admitted to failing to supervise for banking law violations.
The bank also agreed to a three-year ban on accepting new consulting
work that requires regulators to authorize disclosing confidential
Goldman additionally agreed to implement reforms to help ensure it
complies with revolving-door restrictions and prevents the improper use
of confidential regulatory information."
Image caption: "
Udit Kulshrestha, Bloomberg via Getty Images" .