The Securities and Exchange Commission and the regulatory arm of NYSE Euronext disciplined the equities arm of Goldman Sachs & Co. on Tuesday, tied to alleged violations of rules on short-selling stocks.
In December 2008 and January 2009, Goldman Sachs Execution & Clearing LP failed to close out failures to deliver positions on some stocks, while accepting hundreds of short-sale orders in stocks in which the firm had open fail-to-deliver positions, according to a Tuesday notice from NYSE Regulation.
The disciplinary action comes as Goldman Sachs grapples with SEC accusations of civil fraud tied to its dealings in the mortgage market, where the bank stands accused of stacking the deck against its own clients.
Goldman Sachs neither admitted or denied the findings announced Tuesday. NYSE Euronext imposed a censure and a $450,000 fine on the firm, an amount that will be reduced by a $225,000 civil monetary penalty related to proceedings instituted by the Securities and Exchange Commission, according to the notice.
Goldman Sachs & Co. is a unit of parent company, Goldman Sachs Group Inc.
