Banking industry regulator FINRA issued an $11m fine as it said Goldman Sachs had failed to supervise equity analyst communications and monitor trading in advance of published research changes.
The other $11m fine came from the SEC, the US Securities and Exchange Commission, which said that "higher-risk trading and business strategies require higher-order controls", something the bank had failed to deliver.
Brad Bennett, FINRA executive VP, said Goldman's trading huddles – in which analysts met traders to share ideas – "created an environment of heightened risk in which material non-public information concerning analysts' published research could be disclosed to its clients".
He added that Goldman Sachs "did not have an adequate system in place to monitor client trading in advance of changes in its published research".
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