Investing firm Goldman Sachs fired several executives in its transaction banking unit after they violated the company’s communications policy, according to a memo cited by Reuters in a piece published Wednesday.
Though the memo did not list the individuals affected by Goldman Sachs’ decision, a source revealed to Reuters that head of transaction banking, Hari Moorthy, was among those who were relieved of their duties. The memo cited by the outlet shows that Goldman Sachs treasurer, Philip Berlinski, will take over day-to-day management of transaction banking alongside Akila Raman and Luc Teboul.
In addition to handling transaction banking, Berlinski is the interim head of Goldman Sach’s financial technology and consumer business, according to Reuters.
NEW YORK – DECEMBER 16: A television plays at the The Goldman Sachs booth on the floor of the New York Stock Exchange during afternoon trading December 16, 2008 in New York City. The Federal Reserve slashed the federal funds rate, the interest banks charge each other, to a record low of zero to one quarter percent, sending stocks higher in mid-afternoon trading. Goldman Sachs announced they posted their first loss since going public in 1999. (Photo by Chris Hondros/Getty Images)
While Goldman Sachs refused to comment on “individual disciplinary matters,” the company stressed that it took its “communications policy seriously,” expecting all personnel to “comply with it,” the outlet stated.
Goldman Sachs’ communication policy requires that all employees use company-approved communications channels to conduct business, Reuters reported. In 2022, the Securities and Exchange Commission and the Commodity Futures Trading Commission imposed hefty fines on a dozen Wall Street banks — including Goldman Sachs — over employees’ use of mobile phones and messaging apps to transact business, according to Financial News London. (RELATED: Regulators Hit America’s Largest Bank With $200 Million Fine)
In January, Morgan Stanley reportedly fined its employees upwards of $1 million for violating its communications policies via the use of unauthorized messaging platforms to conduct business.