Goldman Sachs fires transaction banking chief Hari Moorthy and other executives
GOLDMAN Sachs Group fired transaction banking executives including the head of the business, Hari Moorthy, over compliance lapses, a person with direct knowledge of the matter said.
The Wall Street firm terminated several leaders of the unit who communicated on unauthorised channels and didn’t comply with an internal review, according to a memo to employees seen by Bloomberg. Moorthy, who isn’t named in the memo, didn’t immediately respond to messages seeking comment.
“We are not going to comment on individual disciplinary matters. As a general matter, we take our communications policy seriously, and we expect all of our personnel to comply with it,” the bank said in a statement. “Goldman Sachs remains fully committed to our transaction banking business.”
The abrupt ousters hit a unit that Goldman has been working hard to grow, as it looks to soak up more corporate deposits and generate steady fees.
At an investor day in February, chief executive officer David Solomon said the young business — already profitable — is just at the beginning of its potential to deliver more for the company.
Wall Street banks are under heavy pressure to police employees’ communications following a US crackdown on the industry’s widespread use of WhatsApp and other unauthorised platforms.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Federal rules require firms to monitor and archive all work-related messages. Goldman was one of several banks that regulators slapped with fines of US$200 million apiece last year.
In recent months, the transaction banking unit has also faced Federal Reserve scrutiny that previously focused on the company’s oversight of consumer banking. The dismissals are unrelated to those inquiries, the person with knowledge of the matter said.
The internal memo, written by Goldman Treasurer Philip Berlinski, reminds employees of their duty to comply with rules and to report any concerns. Berlinski said he will oversee the business with Akila Raman and Luc Teboul, and that the company is staunchly committed to its continued growth. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
A timeline of DBS’ recent banking glitches
Eighth money laundering accused, Wang Dehai, expected to plead guilty on Jun 13
Money laundering accused Su Jianfeng slapped with six new charges for submitting forged documents to OCBC, Maybank
Visa adds new way to share customer shopping data with retailers
Stablecoin issuer Circle to make US legal home ahead of listing
Coinbase targets crypto demand in US$600 billion Australian pension sector