Goldman Sachs are to be fined £20m by the UK’s Financial Services Authority for their failure to disclose to the FSA that they were being investigated for fraud in the US, for which they have no settled $550m.
That’s the kind interpretation. I have to say that: I just don’t think people forget to mention such things.
And yet still this bank is treated as credible by our government. Why? When will they be put on HM Government's “stop list”?
And why have they still got a banking licence? After all, is someone that careless on such an issue really a fit and proper purpose to be trusted with a banking licence? I doubt it.
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Goldman Sachs never had a banking license (except for a minor operation in Utah and in some small countries like Switzerland or the UK) until November 2008. It had to take a NY license as part of the government’s “offer” for financial support (an offer GS could not refuse), which turned to be one of the taxpayer’s (i.e. ME and YOU) best “investment” ever.
There are many inside and outside GS (many shareholders) who wish GS had never turned itself into a bank holding company. With it came a leel of scrutiny and interference that many feel has become an obstacle to the conduct of the business.
Given the choice, GS would probably happily return to being a broker-dealer.