Former Goldman Sachs banker Rohit Bansal was penalized with a huge fine and hours of communtiy service for leaking confidential information from the Federal Reserve Bank of New York to impress his superiors. The U.S. Magistrate spared him jail time, assessing that Bansal's eternal expulsion from the banking industry because of a damaged reputation are punishments that he may never recover from.
According to ABC News, Bansal solilcited the documents in 2014 from an old colleague at the Federal Reserve Bank where he himself used to work as an employee for seven years. Goldman Sachs fired him after discovering the act. No other financial institution would touch or hire him now, and it would take Bansal years before his professional reputation can recover from this breach of trust.
U.S. Magistrate Gabriel Gorenstein handed down a penalty of 300 hours of community service and a $5,000 fine. Jail time was not necessary given the more severe penalty of his being banned from pursuing a career in banking. Gorenstein adds, "Because of the power of the internet, his reputation is forever besmirched."
In a related report, Bloomberg says that the prosecution wanted a stiffer sentence, as Bansal obtained a total of 35 documents from his former colleague. Gorenstein, however, noted that while confidentiality was violated, no direct damage to the banking community or its clients had been established. Savannah Stevenson, Bansal's counsel, said that her client acted out of extreme pressure on the job and is now currently assisting government regulators.
Bansal himself says, " "During my short time at Goldman Sachs I truly lost sight of what was right and acted in a way I know was wrong." Channel News Asia adds that despite his not meting out a prison sentence, Gorenstein found Bansal's actions "disturbing."
The judge, however, says that the irreparable damage to Bansal's career and his criminal record will send a "powerful message" to other bankers tempted to do the same act.
