Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

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 CET

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that it would have considered a temporary ban on Goldman issuing new warrants, but because the bank had voluntarily withdrawn from that market anyway between April and November it would not add this punishment.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
Latest news on GOLDMAN SACHS GROUP INC
01/24 GARY COHN : Goldman's Cohn leaves firm with $85 million en route to Washington
01/24 GOLDMAN SACHS GROUP INC : Change in Directors or Principal Officers (form 8-K)
01/24 GOLDMAN SACHS : Ex-Goldman programmer's code theft conviction revived by New Yor..
01/24 Goldman Sachs files $1 billion countersuit against Indonesian businessman
01/24DJBankers Cash In on Post-Election Stock Rally -- WSJ
01/24 GOLDMAN SACHS : files $1 bln countersuit against Indonesian businessman
01/24 WHEN THREE BECOME ONE : Sports Direct splits from its top brokers
01/24 GOLDMAN SACHS : Trump’s Election Was A Buzzer-Beater For Goldman Execs&rsq..
01/24DJBankers Cash In on Postelection Stock Rally
01/23DJGoldman Sachs, Morgan Stanley, J.P. Morgan Executives Have Sold Almost $100 M..
More news
Sector news : Investment Banking & Brokerage Services - NEC
01/24DJGUOTAI JUNAN SECURITIES : Correction to Finance Watch on Jan. 22
01/24DJMORGAN STANLEY : Citigroup Settle Misleading Claims Charges in Forex Trading Pro..
01/24 MORGAN STANLEY : Toronto biotech raises $200 million ahead of ADHD drug decision
01/24DJBankers Cash In on Post-Election Stock Rally -- WSJ
01/24 Takata shares lose nearly half their value in less than a week
More sector news : Investment Banking & Brokerage Services - NEC
News from SeekingAlpha
01/24 Rejection of Aetna/Humana deal could cast pall over M&A - Compass Point
01/24 INSIDERINSIGHTS.COM DAILY ROUND UP 1 : Hrtx, mcc, glv, opk
01/23 Bank execs use post-election rally to ring the register
01/23 Buying Big Banks For My DGI Portfolio
01/23 Breakups may still be on agenda for big banks
Advertisement
Financials ($)
Sales 2017 33 014 M
EBIT 2017 12 008 M
Net income 2017 7 821 M
Debt 2017 -
Yield 2017 1,20%
P/E ratio 2017 12,63
P/E ratio 2018 10,84
Capi. / Sales 2017 2,80x
Capi. / Sales 2018 2,69x
Capitalization 92 521 M
More Financials
Chart GOLDMAN SACHS GROUP INC
Duration : Period :
Goldman Sachs Group Inc Technical Analysis Chart | GS | US38141G1040 | 4-Traders
Full-screen chart
Technical analysis trends GOLDMAN SACHS GRO...
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 244 $
Spread / Average Target 4,7%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Lloyd Craig Blankfein Chairman & Chief Executive Officer
Harvey Mitchell Schwartz Co-President, Co-Chief Operating Officer & CFO
David Solomon Co-President & Co-Chief Operating Officer
James A. Johnson Independent Director
William W. George Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
GOLDMAN SACHS GROUP IN..-2.83%92 521
MORGAN STANLEY-0.69%78 584
CHARLES SCHWAB CORP4.36%54 604
CITIC SECURITIES CO LT..2.18%28 252
NOMURA HOLDINGS, INC.-0.32%23 462
GUOSEN SECURITIES CO L..--.--%18 006
More Results