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Goldman's decision, announced internally on
Friday, also bars bankers from investing in activist or
event-driven hedge funds, Andrew Williams, a Goldman Sachs
spokesman, told Reuters. The rule will be effective immediately,
he said.
Separately on Friday, U.S. Senator Elizabeth Warren, a Democrat
on the banking committee, called for hearings into issues raised
by secretly taped conversations between Federal Reserve
supervisors and Goldman officials.
Carmen Segarra, a former New York Fed bank examiner who recorded
the conversations, brought a wrongful termination lawsuit
against her former employer last year, alleging that she was
fired due to her refusal to change her findings that Goldman
Sachs had no companywide conflict of interest policy.
A source familiar with the situation said the bank's new rules
on Friday were in the works for some time and were unrelated to
the Segarra case.
Segarra's suit was dismissed in April for failing to state a
claim that merited whistleblower protection, a decision she is
appealing.
According to the complaint, Segarra's review included the
roughly $23 billion takeover of pipeline company El Paso Corp by
Kinder Morgan Inc. Goldman advised El Paso on the 2012 merger
despite holding a big stake in Kinder Morgan.
(Reporting by Amrutha Gayathri in Bangalore and Lauren LaCapra
in New York; Editing by David Gregorio and Ken Wills)
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