Ex-Goldman executive banned from banking for mishandling documents, Fed says

FILE PHOTO: The Goldman Sachs logo is seen on the floor of the New York Stock Exchange (NYSE) in New York, New York, U.S. November 17, 2021. REUTERS/Andrew Kelly

(Reuters) – A former Goldman Sachs GS.N The chief executive has been permanently barred from the banking industry for mishandling confidential documents leaked by the New York Federal Reserve, the U.S. central bank announced on Thursday.

Joseph Jiampietro, the former Goldman executive, agreed to the ban, the Fed, which regulates Wall Street, said in a statement, ending a long-running case that reflected potential disputes when government workers go to the private sector but continue to communicate with former employers.

The US central bank began enforcement proceedings against Jiampietro in 2016, accusing him of asking Goldman junior banker Rohit Bansal in 2014 to obtain secrets from the New York Fed, where Bansal worked. formerly, for use in Goldman’s client advisory work and presentations to potential clients. .

Bansal and his New York Fed source, Jason Gross, pleaded guilty in November 2015 to theft of public property. Both were sentenced to probation and banned from the banking industry.

An administrative law judge overseeing the case found that Jiampietro failed in his duty to Goldman by ignoring “red flags” and failing to determine the confidential nature of the documents coming from the Fed.

In 2018, Jiampietro, who denied any wrongdoing, sued the Fed, accusing it of dragging its feet on its call for a possible lifetime industry ban.

Thursday’s announcement ends the Fed’s enforcement proceedings against Jiampietro, the central bank said.

Goldman paid $86.3 million in penalties to the Fed and the New York State Department of Financial Services in connection with the leak. The investment bank fired Jiampietro and Bansal in 2014.

Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama and Paul Simao

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