BOSTON (AP) – Massachusetts regulators have fined Goldman, Sachs & Co. $10 million and ordered the investment firm to stop its policy of favoring certain clients over others.
In a settlement announced Thursday by Secretary of State William Galvin’s office, Goldman Sachs also agreed to stop internal meetings held among equity research analysts and traders, referred to by the company as “huddles.”
Galvin said Goldman Sachs adopted a tiered system of ranking clients, with only top-tiered clients receiving calls from senior analysts with information discussed in the huddles.
The system excluded some Massachusetts pension funds from receiving calls or easily accessing Goldman Sachs research.
The investigation found such practices to be “dishonest and unethical,” but not fraudulent.
A spokesman for Goldman Sachs said the firm was pleased to have resolved the matter.
(Copyright 2011 by The Associated Press. All Rights Reserved.)