|Goldman Sachs CEO and Chairman Lloyd Blankfein|
NEW YORK ( TheStreet) -- Goldman Sachs ( GS) will pay $11 million each to the Securities and Exchange Commission and the Financial Industry Regulatory Authority over so-called trading huddles, a practice in which analysts at the company shared short-term trading ideas with favored clients. The SEC stated Goldman "lacked adequate policies and procedures to address the risk that during weekly 'huddles,' the firm's analysts could share material, nonpublic information about upcoming research changes."
The Wall Street Journal first reported on the practice in August 2009 and Goldman reached a $10 million settlement with Massachusetts regulators over the trading huddles in June of last year . "We are pleased to have resolved this matter," wrote a Goldman spokesman via email. -- Written by Dan Freed in New York. Follow this writer on Twitter.