Goldman Sachs has been fined $650,000 by the Financial Industry Regulatory Authority for failing to properly disclose to regulators that two of its executives were going to be investigated by the Securities & Exchange Commission, FINRA announced Tuesday.
After eyeballing the firm's revealing second-quarter results, maybe investors should start getting used to the idea that Goldman Sachs will no longer be the invincible Wall Street powerhouse it has been all these many years.
The $550 million SEC settlement is just 8.9% of the $6.2 billion jump in Goldman's market value on the day the deal was announced. And it's an even smaller portion of the backdoor, taxpayer-funded bailout Goldman was handed in 2008.
Goldman Sachs is facing another SEC inquiry into its handling of a collateralized debt obligation, this time involving a security called Hudson Mezzanine, which was based on low-quality subprime mortgages. Goldman sold the CDOs to investors, then bet against them.