Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Goldman Sachs Group Inc    GS

Delayed Quote. Delayed  - 06/24 10:01:03 pm
141.86 USD   -7.07%
06/25 GOLDMAN SACHS : US Stocks Closes Lower
06/24 Frankfurt or bust? Wall St bankers in London ponder life post Bre..
06/24 UK markets shudder after Brexit vote, sterling hits 31-year low
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Goldman Sachs Group, Inc. : Goldman Sachs censured, no further penalty on 2011 warrants case

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/27/2012 | 01:14pm CEST

Goldman Sachs on Friday received an official censure, but no further penalty, from the Hong Kong Stock Exchange following the resolution of a case involving a typographical error in the documentation of some warrants it issued in February 2011.

In administering its slap on the wrist to the US investment bank, the exchange said it took into account several mitigating factors including the fact that this was the first such case for Goldman Sachs since it began issuing the products in 2005.

The bank had also maintained dialogue with the exchange after noticing what had been a mistake.

An error in the formula in the documents, which had been prepared by an external agency but reviewed and approved internally by Goldman, meant that the warrants appeared to be worth much more than they were intended to be.

As a result, the bank noticed unusual trading in the warrants which it attributed to increased interest following the Japanese earthquake and tsunami in March last year.

"During the night of 30 March 2011, a member of the GS warrants team was informed by an acquaintance of a market rumour that there was a difference in the formula used in documentation prepared and published by GS in relation to the warrants and the documentation for a similar Nikkei warrant issued by another institution," the exchange said in the release.

The next morning Goldman staff identified the typo and asked its lawyers to advise the exchange. Following a surge in trading activity that morning, the warrants were suspended.

Goldman Sachs offered compensation to affected investors through a buyback program, the exchange said, "at the higher of 110 per cent of their acquisition cost or the highest value they might have reached during the period of suspension".

The exchange said that it would have considered a temporary ban on Goldman issuing new warrants, but because the bank had voluntarily withdrawn from that market anyway between April and November it would not add this punishment.

Goldman Sachs said it was pleased the matter was now closed.

"We look forward to continuing to grow our warrants business in Hong Kong," it said.

(Editing by Nick Macfie)

By Lawrence White

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news on GOLDMAN SACHS GROUP INC
06:52p GOLDMAN SACHS : MPs to scrutinise Sir Philip Green's link with influential banke..
08:18a GOLDMAN SACHS : Brexit may blind us to BHS’s bankers
06/25 GOLDMAN SACHS : US Stocks Closes Lower
06/24 Frankfurt or bust? Wall St bankers in London ponder life post Brexit
06/24 UK markets shudder after Brexit vote, sterling hits 31-year low
06/24 Factbox - Business reaction to Britain's decision to leave the EU
06/24 DOW MOVERS : Gs, vz
06/24DJBlackRock to Push Wall Street Chat Tool
06/24 Business reaction to Britain's decision to leave the EU
06/24DJDONG ENERGY A/S : Adds German Wind Project to Exceed 2020 Target
Advertisement
News chart
Full-screen chart
Income Statement Evolution
More Financials