Goldman Sachs, the renowned Wall Street bank, has taken action against several executives in its transaction banking unit after they violated the firm's communications policy. This move comes as a part of a broader crackdown following last year's $2 billion fines imposed on banks. In a memo to employees, Goldman Sachs stated that it had "terminated" the executives due to the serious violations of company policies, leading to a loss of confidence in them.
Among the departures was Hari Moorthy, a partner and head of transaction banking. The unit will now be managed by Philip Berlinski, Akila Raman-Vaseghi, and Luc Teboul.
In addition to these fines, Goldman Sachs was recently ordered to pay a $5.5 million penalty by the US Commodity Futures Trading Commission for failing to properly record trading communications during the pandemic.
Goldman Sachs' communications policy emphasizes the use of approved channels for work-related matters.
The transaction banking business is relatively new for Goldman Sachs as it aims to diversify beyond its traditional strengths in trading and investment banking. Launched in 2020, this unit primarily focuses on providing cash management services to clients but remains much smaller compared to industry giants such as Citigroup and JPMorgan.
(This story originally appeared at FNLondon.com)