Goldman Sachs to pay $15 million to settle SEC stock lending case
Suzanne Barlyn, 15 January 2016
(Reuters) – Goldman Sachs & Co GS.N will pay $15 million to settle civil charges that its securities lending practices violated federal regulations, the U.S. Securities and Exchange Commission said on Thursday.
Goldman made improper representations to customers who requested that the firm locate certain stocks for short selling, the SEC said. Goldman told those customers that it had arranged to borrow, or believed it could borrow, the security to settle the short sale, a process known as “granting locates.”
