FSA To Slap Goldman On Wrist Re Abacus Tomorrow

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You're a naughty bank-- you're naughty!

Goldman Sachs is facing a fine thought to be near £20m from the UK’s financial regulator following a five-month investigation into the investment bank’s international business initiated in the wake of fraud charges against the company in the US. The fine, which could be announced by the Financial Services Authority as early as Thursday morning, will deal a blow to Goldman’s efforts to put the high-profile case behind it following the bank’s settlement with the US Securities and Exchange Commission probe in July for $550m. The FSA opened its investigation into the bank in April after the SEC charged Goldman with misleading investors in a complex mortgage-backed security known as Abacus. The SEC claimed that Goldman had failed to disclose that a hedge fund that was betting against the security had selected some of the mortgage loans included in the portfolio, costing investors as much as $1bn.

Goldman Faces Large Fine In UK [FT]

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