Goldman Sachs Group Inc. faces an inquiry from the U.S. Securities and Exchange Commission over the exit of a banker who had made allegations of unethical conduct by the firm, the New York Times reported.
The SEC requested information about the 2015 departure of James Katzman, the newspaper reported, citing people who were briefed on the situation.
In September, the Times reported that Katzman had left the firm after he called the bank’s whistle-blower hotline in 2014. Citing people close to the banker, the newspaper said Katzman had complained about practices including an effort by the firm to hire the child of a customer, and alleged attempts to misuse private client information. He signed a confidentiality agreement when he left the bank, the Times said.
“The legal department conducted an exhaustive investigation of the matters Mr. Katzman raised in accordance with our whistle-blower policy,” Goldman Sachs spokesman Michael DuVally said Tuesday in an emailed statement. “We did not find that confidential client information was shared with other clients. We have never limited the ability of our current or former employees to raise any concern that they may have with regulators or the Goldman Sachs Board.”
SEC spokeswoman Judy Burns declined to comment.
This article was provided by Bloomberg News.