The Federal Reserve Board announced this week that it permanently barred from the banking industry Joseph Jiampietro, a former managing director at Goldman Sachs Group, Inc.
Jiampietro agreed to the prohibition, stemming from his unauthorized use and disclosure of confidential supervisory information.
A former industry over mishandling confidential documents leaked from the New York Federal Reserve, the U.S. central bank said on Thursday.
Confidential supervisory information includes bank examination reports and other confidential reports prepared by banking regulators. It is illegal to use or disclose confidential supervisory information without prior approval of the appropriate banking regulator.
In August 2016, the Board announced that it was instituting enforcement proceedings against Jiampietro and sought to permanently bar him from employment in the banking industry. The prohibition today will end those proceedings.
Jiampietro agreed to the prohibition, ending a long-running case that reflected potential conflicts when government employees move to the private sector but continue to communicate with former employers.
The U.S. central bank began enforcement proceedings against Jiampietro in 2016, accusing him of having asked Goldman junior banker Rohit Bansal in 2014 to obtain secrets from the New York Fed, where Bansal once worked, for use in Goldman’s client advisory work and pitches to potential clients.
Bansal and his source at the New York Fed, Jason Gross, pleaded guilty in November 2015 to the theft of government property. Both were sentenced to probation and banned from the banking industry.
An administrative law judge overseeing the case concluded that Jiampietro breached duties he owed to Goldman by ignoring “red flags” and failing to determine the confidential nature of documents originating from the Fed.
In 2018, Jiampietro, who denied wrongdoing, sued the Fed, accusing it of dragging its heels on his appeal of a possible lifetime industry ban.
The announcement on Thursday ends the Fed’s enforcement proceedings against Jiampietro, the central bank said.
Goldman paid $86.3 million in penalties to the Fed and New York State’s Department of Financial Services in connection with the leaking. The investment bank fired Jiampietro and Bansal in 2014.