Goldman Sachs fined £17.5m by FSA

9 September 2010

Goldman Sachs has been fined £17.5 million by the Financial Services Authority (FSA) for failing to mention to the British regulatory body that it was facing fraud charges in the US.

The investment bank was accused of helping to design mortgage-backed securities that were designed to fail and then selling them on to investors.

Earlier this year, Goldman Sachs paid the Securities and Exchange Commission $550 million to settle the case in America.

The FSA fine - which is one of the heaviest it has ever imposed - was also levied because Goldman Sachs did not disclose that Fabrice Tourre, the man at the center of the claims, was working in the UK as the fraud investigation took place.

Earlier this week, Bloomberg reported that Goldman Sachs is planning to close its principal strategies unit in light of the Dodd-Frank Act regulations which stop banks making bets with their own capital.

By Tony Aynsley

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