The Goldman Sachs Group, Inc. and Goldman, Sachs & Co. agreed to pay a fine of US $50 million to the New York State Department of Financial Services for allegedly failing to institute and maintain procedures to preclude the firm’s possession of the department’s confidential supervisory information. According to an agreed Order, Goldman Sachs hired an unnamed individual who previously was a bank examiner at the Federal Reserve Bank of New York. Shortly after commencing his employment, the individual forwarded guidance from the New York Fed to his Goldman Sachs supervisor, saying he was prohibited for one year from directly working “on matters for, or on behalf of” an unnamed regulated entity that he previously had served as the principal contact for while at the New York Fed, said the Order. Notwithstanding, according to the Order, the individual was placed on matters for the regulated entity from the outset of his Goldman Sachs employment. The Order alleged that the individual also “wrongfully obtained confidential information” from the New York Fed, including approximately 35 documents, at least nine of which the NYS DFS claimed was “confidential supervisory information” under New York law. According to the Order, the individual shared some confidential information regarding the regulated entity with other Goldman Sachs employees, including his supervisor. The Order acknowledged that, following its own investigation, Goldman Sachs terminated both the individual and his supervisor in October 2014. As part of its settlement, Goldman Sachs agreed to enhance its relevant policies and procedures and not to accept for three years any new consulting engagements that require the NYS DFS to disclose confidential information under New York law. News media has reported that the individual who allegedly received confidential information from the New York Fed, Rohit Bansal, and Jason Gross, a former colleague of Mr. Bansal's while both worked at the New York Fed and who purportedly provided Mr. Bansal at least some of the confidential information, will accept plea deals to criminal charges related to this matter from the US Attorneys Office in Manhattan (click here to access a sample article).