Goldman fined $650,000 for disclosure lapse.


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1Goldman fined $ 650,000 for disclosure lapse .
2Industry regulators have fined Goldman Sachs $ 650,000 for failing to disclose that two of its brokers , including the executive accused of leading the mortgage securities deal that brought civil fraud charges against the firm , were under investigation by the government .
3The Financial Industry Regulatory Authority announced the fine Tuesday , saying Goldman lacked adequate procedures to ensure that the required disclosure was made for Fabrice Tourre , a Goldman vice president .
4Goldman made that report last May , more than seven months after Tourre received a notice from the Securities and Exchange Commission that it was considering filing charges against him , FINRA said .
5Goldman settled the SEC 's fraud charges in July , paying a record $ 550 million .
6The case was the most significant legal action related to the mortgage meltdown that pushed the country into recession .
7Goldman 's failure to disclose the information about the brokers `` impacted the ability of FINRA and other securities regulators to discharge their registration , examination and oversight duties , and limited the ability of investors ... to adequately assess the -LRB- two -RRB- individuals through FINRA 's public disclosure program , BrokerCheck , '' James Shorris , FINRA executive vice president and acting chief of enforcement , said in a statement .
8The Wall Street titan neither admitted nor denied FINRA 's allegations in agreeing to pay the fine .
9Goldman also agreed to review its supervision procedures for disclosures and to make any needed changes .
10`` We 're pleased to put this matter behind us , '' said Goldman spokesman Michael DuVally in New York .
11He declined further comment .
12The second broker was n't named because , the regulator said , that person was n't named in any SEC complaints .
13FINRA did n't specify whether the notice from the SEC that the second broker received also was related to the charges that Goldman misled buyers of mortgage-linked investments .
14The SEC had alleged in that case that Goldman sold mortgage invstments without telling buyers that the securities had been crafted with input from a client that was betting on them to fail .
15The securities cost two European banks close to $ 1 billion while helping Goldman client Paulson & Co. capitalize on the housing bust , the SEC said in the charges filed in April .