(Reuters) - Goldman Sachs & Co (N:GS) will pay $15 million to settle civil charges that its securities lending practices violated federal regulations, the U.S. Securities and Exchange Commission said on Thursday.
Goldman made improper representations to customers who requested that the firm locate certain stocks for short selling, the SEC said. Goldman told those customers that it had arranged to borrow, or believed it could borrow, the security to settle the short sale, a process known as "granting locates."
Goldman, however, had not performed an adequate review of the securities customers had asked it to locate, the SEC said.
"We are pleased to have resolved this matter with the SEC," A Goldman Sachs spokeswoman said.