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Goldman Sachs Fined $36 Million by Fed Over Leaked Documents

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Goldman Sachs

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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Oil Prices News: Oil Gains Following Drops in US Crude Inventories

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markets energies crude oil

Oil Prices Gain Following Drops in US Crude Inventories and OPEC High Compliance Level

Global oil prices extended their 2 percent gains on Thursday after data showed U.S crude oil inventories declined last week.

The price of Brent crude oil, against which Nigerian oil is measured, gained 0.2 percent or 7 cents to $43.39 a barrel as at 12:10 pm Nigerian time. While the U.S. West Texas Intermediate (WTI) crude appreciated by 8 cent or 0.2 percent to $41.12 barrels.

Oil prices extended their three days gain after the American Petroleum Institute said the U.S crude inventories declined by 5.4 million barrels in the week ended October 9.

The report released after the market closed on Wednesday revealed that distillate stockpiles, which include diesel and heating oil, declined by 3.9 million barrels. Those stated drawdowns almost double analysts’ projections for the week.

Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

“Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”

Also, the report that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+ attained 102 percent compliance level with their oil production cuts agreements bolstered global oil outlook. Suggesting that demands for the commodity are likely not growing and could drag down prices in few weeks, especially when one factor in the reopening of Libya’s Sharara oil field, workers returning to operation in Norway and the Gulf of Mexico.

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Oil Prices Gain on Tuesday Despite Expected Surge in Global Oil Supplies

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Oil

Oil Prices Rise Despite Expected Surge in Global Oil Supplies

Oil prices gained on Tuesday despite Libya opening Sharara oil field for production, labour in Norway reaching an agreement with oil firms to return back to work and oil workers in the U.S returning to the Gulf of Mexico region after the Hurrican Delta.

Brent crude oil, against which Nigerian oil price is measured, gained 1.77 percent to $42.46 per barrel as at 11:15 am Nigerian time on Tuesday.

While the US West Texas Intermediate (WTI) crude oil gained 2 percent to close at $40.22 per barrel.

The improvement in prices was after oil prices plunged as much as 3 percent on Monday following a resolution reached by Libyan rebels and government to commence oil production at the nation’s largest oil field, Sharara Oil Field.

This coupled with labour agreement with oil firms in Norway was expected to boost global oil supplies and eventually weighed on prices and disrupt OPEC+ production cuts strategy.

However, prices surged after Nancy Pelosi said she would commence talks on $1.8 trillion stimulus package following President Trump’s return to the White House after he was rushed to hospital following a positive COVID-19 test.

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Joe Biden Win Could Boost Oil Prices, Says Goldman Sachs

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Oil price

Oil Prices to Surge Once Joe Biden Wins -Goldman Sachs

Goldman Sachs, one of the world’s largest investment banks, has said Joe Biden win could boost global oil prices despite weak global economic outlook and COVID-19 negative impacts on the world’s growth.

The investment bank, however, remains bullish on both oil and gas prices regardless of the election outcome in November.

The bank sees oil and gas demand rising enough in 2021 to supersede election results but explained that Biden win could bolster prices by making production more expensive and more regulated for producers in the U.S.

In a note written by the bank’s commodities team on Sunday, it said “We do not expect the upcoming U.S. elections to derail our bullish forecasts for oil and gas prices, with a Blue Wave likely to be in fact a positive catalyst.”

“Headwinds to U.S. oil and gas production would rise further under a Joe Biden administration, even if the candidate has struck a centrist tone.”

Goldman Sachs explained that if incumbent, Trump, is re-elected with pro-oil and gas policies in place that “its impact would likely remain modest at best,” Goldman’s analysts wrote, “given the more powerful shift in investor focus to incorporate ESG metrics and the associated corporate capex re-allocation away from fossil fuels.”

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