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Goldman Sachs Fined $36 Million by Fed Over Leaked Documents

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Goldman Sachs Group Inc. agreed to pay $36.3 million over allegations that former employees obtained confidential documents from the Federal Reserve in a settlement that requires the bank to beef up its policies to prevent another lapse.

The Fed is also pursuing a fine and a permanent banking ban against a former Goldman Sachs managing director, Joseph Jiampietro, over his unauthorized use and disclosure of Fed secrets, according to a statement Wednesday from the agency. The Fed said Goldman Sachs’ employees used confidential supervisory information in presentations to clients to try to solicit business.

Starting in 2012, Jiampietro — an investment banker who formerly worked at the Federal Deposit Insurance Corp. — received bank regulators’ unauthorized supervisory information and used it for his work at Goldman Sachs, according to the Fed.

In 2014, a Goldman Sachs banker, Rohit Bansal, allegedly shared confidential Fed documents with members of his team that Bansal got from a New York Fed employee he had previously worked with. According to an earlier $50 million settlement with the New York Department of Financial Services, Bansal obtained about 35 documents on about 20 occasions from his friend Jason Gross, who was still a New York Fed employee. The information Bansal got from Gross related to a bank that was a Goldman Sachs client, according to that settlement.

“Upon discovering that Rohit Bansal had improperly obtained information from his former employer, the Federal Reserve Bank of New York, we immediately notified regulators, including the Federal Reserve,” Michael DuVally, a Goldman Sachs spokesman, said in a statement Wednesday. “We previously reviewed and strengthened our policies and procedures after Bansal was terminated.”

DuVally said the bank has “no tolerance” for improper handling of confidential supervisory information.

The New York-based lender must fix shortcomings in its policies to prevent future lapses, the Fed said. It must establish an enhanced program to meet compliance expectations around using and disseminating secret supervisory information, according to the settlement. The bank also isn’t allowed to re-hire people involved in the improper disclosures.

In November, the former Goldman Sachs banker Bansal pleaded guilty to a misdemeanor tied to the stolen Fed documents, and the former New York Fed employee, Gross, pleaded guilty to passing him the secret information. The Fed barred Bansal from banking last year, and the Securities and Exchange Commission banned him from the securities industry in June.

Jiampietro had served former FDIC Chairman Sheila Bair as a senior adviser, and when he left the agency in 2010, she thanked him for his “market insight into all areas of policy to help guide and inform FDIC decisions.” Bair also praised the “substantive expertise” of Jiampietro, who had earlier worked for JPMorgan Chase & Co., UBS Group AG and as counsel for the Senate Banking Committee.

“The allegations filed against Mr. Jiampietro are demonstrably false, and rely solely on the testimony of a single and inherently incredible witness,” said Adam Ford, Jiampietro’s lawyer at Ford O’Brien LLP. “He never requested confidential supervisory information from anyone, and never used it for his or anyone’s benefit.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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