Ex-Goldman employee pleads guilty over N.Y. Fed leaks

Thu Nov 5, 2015 4:24pm EST
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By Brendan Pierson and Nate Raymond

NEW YORK (Reuters) - A former Goldman Sachs Group Inc (GS.N: Quote) employee pleaded guilty on Thursday to illegally obtaining confidential information from a former colleague at the Federal Reserve Bank of New York.

Rohit Bansal, a former associate at Goldman Sachs, pleaded guilty to a misdemeanor charge of theft of government property, days after Goldman Sachs reached a related $50 million settlement with the New York Department of Financial Services.

"I accept full responsibility for my actions and am deeply sorry for what I've done," a visibly emotional Bansal said at the plea hearing.

Bansal is scheduled to be sentenced on March 9. He faces up to a year in prison.

Following the plea, the Federal Reserve Board of Governors announced that Bansal would be permanently banned from the banking industry.

Bansal's plea came a day after Jason Gross, a former bank examiner at the New York Fed, likewise pleaded guilty and admitted to providing confidential information to Bansal, who had previously worked with him as a supervisory manager.

The case highlighted the so-called revolving door on Wall Street, in which regulators take new jobs at the banks they formerly oversaw.

According to prosecutors and New York regulators, Bansal, 30, obtained documents from Gross on several occasions after joining Goldman Sachs in July 2014.   Continued...

The Goldman Sachs logo is pictured on their post as traders work on the floor of the New York Stock Exchange in New York August 4, 2014.       REUTERS/Carlo Allegri