In the recent agreement with the Securities and Exchange Commission (SEC), it was revealed that Goldman Sachs submitted over 22,000 deficient *blue sheet applications over a span of nearly ten years. As a result of these deficiencies, the bank agreed to pay a $6 million fine to the SEC. (*Blue sheet data consists of records containing securities transaction information and is of vital importance to the commission.)
The Data Should Have Been Complete and Accurate
Deputy Regional Director of the New York regional office, Thomas Smith Jr., emphasized that blue sheet data plays a critical role for the commission to fully perform its duties. Smith stated that it’s imperative for the data to be complete and accurate in order to protect investors and maintain market integrity.
In the SEC’s investigation, it was found that Goldman Sachs provided deficient or erroneous trade data related to 163 million transactions during this period. It was noted that these errors fell into 43 different categories, and Goldman identified 29 of these errors as a result of their own review.
Goldman Sachs acknowledged these deficiencies and has taken steps to enhance its reporting systems and controls. The SEC pointed out that this situation violated the federal securities laws’ record-keeping and reporting provisions. Consequently, the US-based investment bank agreed to a settlement by committing to pay $6 million.
