Goldman hit with £17.5m fine

By Andy Rice 9 September 2010

Goldman Sachs has received a £17.5 million fine from the UK's Financial Services Authority. The penalty, one of the highest ever handed down by the financial watchdog, relates to a subprime mortgage product called Abacus that was marketed and sold by the company. The FSA said that Goldman had failed to notify it of the fact that one of the main traders involved in selling the product, Fabrice Tourre, were being investigated by the US Security and Exchange at the time that he moved from the US to the firm's UK subsidiary in 2008. Goldman had to cough up $550 million in July to settle the SEC case.  Read more: Reuters, Wall Street Journal