The Daily Telegraph reports that a spokesman for Goldman Sachs has said that the admission of guilt to insider trading charges by a former firm economist was 'extremely embarrassing' and that the whole episode was 'a dark day' for the Wall Street giant.
If the former Goldman man's plea deal is agreed by the judge, 44 year-old John Youngdahl will spend between 33 and 41 months in prison. He has now admitted that he conspired with a Washington political consultant in 2001 to use embargoed information, just ahead of its release to the public. Although he did not personally benefit from the use of the inside information, Goldman Sachs is said to have made around $3.8m from what was an advantage of just 8 minutes.
Youngdahl has agreed to pay US regulator The Securities and Exchange Commission $240,000 and Goldman settled for $9.3m. The consultant has also pleaded guilty to insider dealing. Although there is no evidence to suggest that anyone else at Goldman was involved, the firm is mortified about the affair. It goes against everything Goldman Sachs stands for.
In a prepared statement, Youngdahl said: 'Over the past two years, I have engaged in serious errors of judgement and lapses of integrity. I know these personal failings have inflicted unwarranted pain on my family, my friends and many of my former colleagues. It is my sincere hope that those I hurt will see in my plea of guilty an expression of my deep regret for the pain I have caused'.