ML-Implode News - Fed Readies Enforcement Action Against Goldman Sachs in Theft of Secrets

The planned action, reported earlier by the New York Times, shows the Fed is advancing its own investigation into the incident, in which confidential regulatory materials were leaked to a Goldman staffer from one of his former colleagues at the Federal Reserve Bank of New York. The Fed last year permanently banned from the banking industry the former Goldman staffer who obtained the sensitive documents, and the central bank is now expected to pursue a similar ban for that staffer's former supervisor.
The leak was a black eye for the central bank because it raised fresh questions about the so-called revolving door between the regulator and Wall Street after much criticism in the wake of the financial crisis that the Fed was too lenient on big banks. Since the incident, the Fed has been weighing new measures to tighten the restraints it imposes on bank examiners who leave for jobs with financial institutions.
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The Fed is expected to seek to ban former Goldman executive Joseph Jiampietro from the banking industry. Mr. Jiampietro was fired by Goldman in October 2014, and his most recent role was as a managing director in the investment-banking division.
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A spokeswoman for Goldman said that when the firm discovered the sensitive documents had been obtained, it began its own investigation, terminated the employees implicated and changed its hiring practices for former government employees.

The Fed in November permanently banned from the industry Rohit Bansal, the Goldman employee who got the secrets while working under Mr. Jiampietro
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The Fed didn't fine Goldman when it discovered the theft, but the bank paid $50 million to settle charges last year from the New York State Department of Financial Services that it failed to properly supervise Mr. Bansal. A DFS spokesman declined to comment.

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Fed Readies Enforcement Action Against Goldman Sachs in Theft of Secrets