Goldman Sachs Unit Fined Over IPO Deals
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The NASD on Tuesday fined a Goldman Sachs Group Inc. unit $1 million for allegedly hiding initial public offering allocations after being pressured by clients demanding anonymity.
The regulator said Spear, Leeds & Kellogg, which in January was renamed Goldman Sachs Execution & Clearing, used its system to circumvent Depository Trust Corp.’s IPO Tracking System, which lets underwriters monitor the quick trading, or “flipping,” of new issues.
Depository Trust provides clearance and settlement services to the securities industry.
NASD Vice Chairman Mary Schapiro said Spear Leeds’ actions deprived underwriters and other market participants of critical information related to IPO allocations. She called the actions “deeply troubling.”
Spear Leeds neither admitted nor denied the charges.
The NASD was formerly known as the National Assn of Securities Dealers.
Goldman shares fell $1.61 to $107.99 on the NYSE.
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