Goldman Sachs Fires Many Executives In Transaction Banking
Goldman Sachs has taken action against several executives in its transaction banking unit for violating the company's communications policy, as reported by a media house on Wednesday.
While the memo did not mention the names of the individuals involved, it stated that Philip Berlinski, the bank's treasurer, would assume day-to-day management responsibilities for transaction banking, alongside Akila Raman and Luc Teboul. Berlinski is also temporarily leading Goldman's financial technology and consumer business.
One of the departures included Hari Moorthy, the former head of transaction banking. Moorthy is no longer listed as a registered broker on the Financial Industry Regulatory Authority (FINRA) website and did not respond to attempts to seek comment.
Goldman Sachs declined to comment on specific disciplinary actions but emphasised the importance of its communications policy, which mandates that employees discuss company-related matters using approved communication channels.
The terminated executives not only breached this policy but also failed to cooperate with Goldman Sachs' compliance department. Despite these actions, the bank affirmed its continued commitment to the transaction banking business.
In the broader context, U.S. regulators have imposed substantial fines on numerous Wall Street firms, totaling over USD 2 billion, for their failure to monitor employee use of unofficial communication methods, including text messages and WhatsApp. Goldman Sachs was among the early targets of regulatory penalties for inadequate recordkeeping practices.
