Goldman Sachs and JPMorgan Chase Slapped Lightly on Corporate Wrists for Financial Malfeasance

Saturday, September 29, 2012

Federal regulators have fined Goldman Sachs and JPMorgan Chase for breaking securities and futures rules, respectively.


Goldman Sachs was ordered by the Securities and Exchange Commission (SEC) to pay $12 million to settle pay-to-play charges.


The firm’s troubles stemmed from the involvement of Neil M.M. Morrison, a former Goldman Sachs vice president in Boston, in the political campaign of Massachusetts state treasurer Timothy Cahill while he was a candidate for governor.


Morrison was accused of soliciting underwriting business from Cahill’s office beginning in 2008, while also working on the treasurer’s gubernatorial campaign from Goldman Sachs’ office.


The fine represents the first time that the SEC has penalized someone for pay-to-play violations involving in-kind non-cash contributions to a political campaign.


Meanwhile, JPMorgan Chase agreed to pay a $600,000 to settle Commodity Futures Trading Commission charges that it exceeded speculative position limits on cotton futures contracts trading between September 16 and October 5, 2010 on the IntercontinentalExchange U.S.

-Noel Brinkerhoff


To Learn More:

Goldman Sachs to Pay $12 Million to Settle Pay to Play Charges (Corporate Crime Reporter)

In the Matter of Goldman, Sachs & Co. (Securities and Exchange Commission) (pdf)

CFTC Orders JP Morgan Chase Bank to Pay $600,000 (Corporate Crime Reporter)

In the Matter of J.P. Morgan Chase (Commodity Futures Trading Commission) (pdf)


Leave a comment