Goldman slapped with $7 million fine by ECB for credit risk reporting violations

The European Central Bank said on Monday it had fined Goldman Sachs (NYSE:GS)’ European unit 6.63 million euros ($7.3 million) for underreporting the risk associated with some corporate credit, thereby flattering its balance sheet.

Goldman Sachs said in a statement it had “closely cooperated with the ECB” and “taken all necessary steps” to resolve the issue.

The ECB, the euro zone’s top banking supervisor, said Goldman Sachs Bank Europe misclassified some corporate exposures for eight straight quarters in 2019-21, assigning a lower risk to them than the rules prescribe.

“Deficiencies in internal controls prevented the bank from detecting this mistake in a timely manner,” the ECB said.

Read More: Goldman slapped with $7 million fine by ECB for credit risk reporting violations