Goldman Faces ‘Near Record’ U.K. Fine


Market Watch | 08/09/2010 | 04:50 PM ED

Goldman-Sachs Goldman Sachs faces a large fine from the U.K.’s financial regulator related to its business practices in London, according to a Financial Times report published late Wednesday. Citing unidentified sources, the report says the fine from the Financial Services Authority (FSA) will be "near-record." The FSA’s largest-ever fine came three months ago, when JPMorgan Chase paid £33.3 for failing to hold its clients’ money in separate accounts.

The fine, which the report states could be announced as early as Thursday morning, is the result of a five month investigation announced four days after the Securities and Exchange Commission charged Goldman with civil fraud related to Abacus, a complex debt instrument it sold. Goldman settled that case for $550 million.

Goldman shares, which had been up all day, were weaker in the final hour of trading after the story broke, but still finished up 1.6% to close at $147.54. A Goldman spokesman declined to comment on the Financial Times report and the FSA could not be reached.

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