The Wall Street Journal reported that the US Securities and Exchange Commission is investigating Goldman Sachs Group Inc’s asset-management division.
Citing people familiar with the matter, Wall Street Journal report asset-management division is being probed over its funds that look to invest based on environmental, social, and governance (ESG) standards.
Goldman Sachs, which manages at least four funds that have clean-energy or ESG in their names, is an American multinational investment bank and financial services company headquartered in New York City.
The investigation comes after the SEC proposed a pair of rule changes aimed at stamping out unfounded claims by funds on their ESG credentials.
Goldman sustained a big drop in revenues from asset management and equity and debt underwriting, offset by strong activity in some trading divisions amid market volatility.
According to the company’s Chief Executive David Solomon, the results also included a $300 million hit from Russia.
Solomon described Goldman’s exposure to the conflict as “relatively limited,” saying the bank has been focused on reducing exposure.
Goldman’s reputation was marred when a New York jury convicted its former managing director Roger Ng guilty for his role in propagating a massive bribery and money laundering scheme involving a state-owned Malaysian investment fund.
(With inputs from agencies)
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Source: wionews.com
