Ex-Goldman CEO banned from banking due to mishandling of documents, Fed says

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© . FILE PHOTO: Goldman Sachs logo is seen on the trading floor of the New York Stock Exchange (NYSE) in New York City, New York, US, Nov. 17, 2021. REUTERS/Andrew Kelly

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() – A former director of Goldman Sachs (N:) has been permanently barred from participating in the banking sector for mishandling confidential documents leaked from the New York Federal Reserve, the Federal Reserve said Thursday. Joseph Jiampietro, the former Goldman director, agreed to the ban. employers. The Federal Reserve opened enforcement proceedings against Jiampietro in 2016, accusing him of asking Goldman junior banker Rohit Bansal in 2014 to obtain secrets from the New York Fed, where Bansal once worked, for use in Goldman’s advisory work and for pitches to potential clients. Bansal and his source at the New York Fed, Jason Gross, pleaded guilty to theft of government property in November 2015. Both were sentenced to probation and banned from the banking sector. An administrative judge overseeing the case concluded that Jiampietro breached his obligations to Goldman by ignoring “red flags” and failing to establish the confidential nature of documents emanating from the Fed. In 2018, Jiampietro, who denied the wrongdoing, sued the Fed, accusing it of dragging its heels in its appeal for a possible lifelong ban on the industry. Thursday’s announcement ends the Fed’s enforcement proceedings against Jiampietro, the central bank said. Goldman paid $86.3 million in fines to the Fed and the New York State Department of Financial Services over the leak. The investment bank fired Jiampietro and Bansal in 2014.

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