Goldman Sachs (NYSE:GS) has terminated the employment of several key figures in its transaction banking business, including the unit's head, citing "serious violations" of the company's communications policies.
According to the Financial Times, the move is part of a broader crackdown on Wall Street regarding employees' communications.
Institutions, including Goldman Sachs (NYSE:GS), have previously faced hefty fines for breaches such as using unauthorised messaging apps for business purposes, thereby violating government record-keeping mandates.
In an internal memo, cited by the FT, Goldman Sachs (NYSE:GS) stated it had "lost confidence" in these leaders due to their policy violations.
Four employees were dismissed, including Hari Moorthy, the global head of transaction banking, the paper said. The day-to-day operations of this division will now be managed by Philip Berlinski, Akila Raman and Luc Teboul.
Transaction banking is a relatively new venture for Goldman, launched in 2020, focusing on corporate cash management and providing banking infrastructure to fintech firms without a US banking licence.
The latter has recently come under regulatory scrutiny. Last year, Goldman was among several banks that agreed to pay US$200 million in fines to the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for record-keeping lapses.