Catholic University law school Professor David Lipton was quoted by Bloomberg News on Friday, Sept. 28, for its article “Goldman Settlement Shows Bankers Still Paying to Play.”
The story explored the ethical conflicts inherent in the case of a former vice president in Goldman Sachs Group Inc.’s Boston office, who was substantially engaged in working for the gubernatorial campaign of Timothy P. Cahill from November 2008 to October 2010.
Goldman Sachs recently agreed to pay $14.4 million to settle state and federal claims that its former employee, Neil Morrison, broke rules meant to prevent peddling influence to win government bond business.
The Municipal Securities Rulemaking Board (MSRB) limits how much bankers can contribute to politicians who control bond issues to prevent such cozy arrangements. Lipton, a former member of the MSRB, told Bloomberg News that the fine may be small given the resources of Goldman Sachs, but that “it says this is where we’re going. There is a desire to keep the professional from attracting business through political contributions.”