Yesterday, a Goldman, Sachs & Co. subsidiary, Goldman Sachs Execution & Clearing, L.P. (GSEC), settled allegations by NYSE Regulation and the Securities and Exchange Commission that GSEC violated Rule 204T of Regulation SHO by "failing to timely close out fail to deliver positions." GSEC was censured and agreed to the imposition of a cease and desist order and to pay a $225,000 fine to NYSE Regulation and a $225,000 fine to the U.S. Treasury.
These charges are unrelated to the recent SEC filing of a civil fraud complaint against Goldman Sachs and one of its employees. In connection with that litigation, Goldman announced in a Form 8-K filing with the SEC on Monday the filing a number of putative shareholder derivative actions "generally alleging claims for breach of fiduciary duty, corporate waste, abuse of control, mismanagement and unjust enrichment in connection with collateralized debt obligation offerings made between 2004 and 2007, and challenging the accuracy and completeness of GS Inc.’s disclosure." Goldman also disclosed expanded demands by a shareholder who had previously made a demand that the Goldman Board investigate and take action with respect to "auction rate securities matters" to include various matters related to the SEC proceeding.