Goldman Sachs Bans Partners from Giving Campaign Donations
Goldman Sachs Group Inc. has banned all of its partners from making contributions to campaigns ranging from state and local candidates as well as state or local officials for federal office.
According to an internal memo, every partner is now considered a "restricted person" from engaging in political activities.
Fair or Unfair?
"The policy change is meant to prevent inadvertently violating pay-to-play rules, particularly the look-back provision, when partners transition into roles covered by these rules"
If you remember, in 2010, The Securities and Exchange Commission enacted the pay to play rule after many scandals of money managers trying to improperly influence state officials to win investment management business.
According to a corporate governance statement, Goldman requires all employees to to get approval for political contributions to screen for violations.
