By Justin Baer
Goldman Sachs Group Inc. moved to block bankers and other
employees from trading individual stocks and debt securities in
their own personal accounts, or investing in certain hedge funds,
people familiar with the matter said.
The new restrictions, which were distributed to employees after
the close of trading on Friday, go into effect immediately, one of
the people said. The new rules are part of a continuing review of
the Wall Street firm's compliance policies, the person said. While
some of the policies apply to all employees, they are targeted
primarily at the investment bankers and other staffers who have
access to confidential information, the person said.
The policies are designed to help employees manage potential
conflicts with the firm and its clients, and avoid actions that may
ultimately draw regulatory scrutiny, one person said.
Goldman's role on both sides of a merger between two energy
companies drew a harsh rebuke from Delaware Chancellor Leo Strine
Jr. in 2012. A 2013 lawsuit by a former Federal Reserve Bank of New
York examiner revealed disagreements within the regulator over the
heft of the firm's conflicts-of-interest policies. Earlier Friday,
excerpts from the former examiner's secret recordings were featured
in reports by ProPublica and the radio program, "This American
Life."
Write to Justin Baer at justin.baer@wsj.com
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