European Central Bank gets tough on Goldman Sachs, fined $7.2 million for hiding information

Amidst the Banking Crisis in America, the European Central Bank has intensified monitoring of banks. Goldman Sachs has been fined by the ECB for misrepresenting capital requirements. 

May 16, 2023 - 10:19
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European Central Bank gets tough on Goldman Sachs, fined $7.2 million for hiding information

Goldman Sachs, one of the biggest US banks, has been fined 6.63 million euros ($7.2 million) by the European Central Bank (ECB). This pertains to the misrepresentation of capital requirements on the bank's European branch.
This fine has been imposed by the ECB at such a time. When three banks have drowned due to an increase in interest rates in America.
Notified by the ECB that they have found that Goldman Sachs Bank Europe has breached credit risk reporting rules during 2019, 2020, and 2021. Assets with a lower weighting than credit risk were reported by the bank for eight consecutive quarters.
The statement further said that Goldman Sachs had misclassified the corporate exposure. Due to these reasons, the bank will not be able to catch any wrong in time in the future.
The capital ratio is a very important index that shows the strength of the bank and its ability to bear the loss.
Earlier in July 2017, the ECB imposed a fine of 8.7 million euros on the Italian bank Banca Popolare di Vicenza for not giving correct information in the annual and quarterly reports.
Since March now, Silicon Valley Bank, Signature Bank, and First Republic Bank have sunk in America. The reason behind this is being told to increase the interest rate.
The effect of the banking crisis in America is also being seen in European banks. Credit Suisse also nearly collapsed in Europe, having been acquired by UBS Bank.

Muskan Kumawat Journalist & Writer