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Ex-Goldman banker banned by Fed for misusing confidential information

The US Federal Reserve has permanently banned former Goldman Sachs banker Joseph Jiampietro from working in the banking industry for misusing confidential information.

The decision by the Fed, one of the US banking industry’s key regulators, caps a lengthy case that began with Goldman in 2014 fired Jiampietro for allegedly accessing confidential information of the Federal Reserve Bank of New York.

The Fed has claimed Jiampietro previously received confidential regulatory information from Rohit Bansal, a former Fed employee who worked at Goldman at the time. According to the Fed, Jiampietro and Bansal then used this information to work with clients and market new business.

The issue became public in September 2014, when a Goldman partner saw an email sent by Bansal that contained confidential information and alerted the bank’s compliance department. Goldman fired Jiampietro and Bansal in October 2014.

The Fed, which began enforcement proceedings in 2016, said in a statement Tuesday that Jiampietro “consented to the ban resulting from his unauthorized use and disclosure of confidential regulatory information.”

Jiampietro joined Goldman in early 2011 as a Managing Director in the Financial Institutions Group. From 2009 to 2010, he was senior advisor to the chairman of the Federal Deposit Insurance Corporation, a federal banking regulator.

“Mr. Jiampietro left the industry seven years ago to pursue other tasks. He fought every day to clear his name, but given the passage of time and his plans for the future, the endless litigation no longer made sense. He’s glad he got it over with,” said Adam Ford, partner at Ford O’Brien Landy and attorney for Jiampietro, in a statement.

The affair resulted in Goldman being hit with $50 million in 2015 fine by New York state regulators and a $36.3 million fine in 2016 by the Fed.

https://www.ft.com/content/029c4b31-aaeb-43ea-a0e7-5c0d72da1e6c Ex-Goldman banker banned by Fed for misusing confidential information

Adam Bradshaw

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