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Text of EBSA PTE 2021-02: Exemption from Certain Prohibited Transaction Restrictions Involving the Goldman Sachs Group, Inc.

45 pages. "The Department is granting this exemption to ensure that Covered Plans with assets managed by an asset manager within the corporate family of Goldman Sachs may continue to benefit from the relief provided by PTE 84-14.... The Department intends for the terms of this exemption to promote adherence to basic fiduciary standards under ERISA and the Code.... The Department cautions that the relief in this exemption will terminate immediately if an entity within the Goldman Sachs corporate structure is convicted of a crime described in Section I(g) of PTE 84-14 (other than the Goldman Sachs Malaysia Conviction) during the Exemption Period."

Goldman Sachs Wins Big on Summary Judgment in Case Challenging 401(k)'s Investments in Goldman Proprietary Funds

"The court saw the fiduciary breach claim as turning primarily on Goldman's lack of an investment policy statement for the plan. Although the plaintiff's experts testified that having an IPS was a common and indeed 'best practice' ... because it was not strictly required under ERISA the court concluded that the lack of such a policy did not establish imprudence.... Nor did the court agree that the plan fiduciaries lacked a deliberative process, despite the sparse minute reports from the investment committee's quarterly and ad hoc meetings." [Falberg v. The Goldman Sachs Group, Inc., No. 19-9910 (S.D.N.Y. Sep. 14, 2022)]

The Goldman Sachs Investment Performance Appellate Victory: How a Robust Fiduciary Process Helps Disprove the Disloyalty Claim for Proprietary Investments

"It is way too easy to bring a claim of fiduciary disloyalty, as courts give the benefit of doubt to plan participants who bring these claims. But the Goldman Sachs case shows how a prudent process of engaged and diligent fiduciaries can be used to rebut the unfounded claims of disloyalty and fiduciary imprudence on a summary judgment record. The case hopefully will give support for district court judges to grant summary judgment in more performance cases even when proof of fiduciary prudence is inherently fact intensive." [Falberg v. The Goldman Sachs Group, Inc., No. 22-2689 (2d Cir. Feb. 14, 2024)]

Second Circuit Upholds Rejection of 401(k) Plan Complaint Against Goldman Sachs

"Although the plaintiff argued that plan executives didn't establish a formal process for selecting and monitoring investments, the district court disagreed -- and so did the appeals court. The investment committee 'followed a rigorous and deliberative process when selecting and monitoring investments,' the appeals court judges wrote." [Falberg v. The Goldman Sachs Group, Inc., No. 22-2689 (2d Cir. Feb. 14, 2024)]

Goldman Sachs 401(k) Fee Class Action Dismissed

"[T]he Court found that the Defendants had robust policies and procedures in place for monitoring and evaluating the Plan's investment options ... [and] reiterated that not adopting an IPS is not a per se ERISA violation.... [T]he Court found that the Plan was treated no less favorably than similarly situated plans with respect to fee rebates, and dismissed Plaintiff's prohibited transaction claim. " [Falberg v. The Goldman Sachs Group, Inc., No. 19-9910 (S.D.N.Y. Sep. 14, 2022)]

District Court: Goldman Sachs Did Not Violate ERISA Requirements

"A federal judge has ruled in Goldman Sachs' favor in a summary judgement that holds that the firm was not in breach of the fiduciary duty under ERISA to its employees invested in defined contribution retirement plans maintained by the firm." [Falberg v. The Goldman Sachs Group, Inc., No. 19-9910 (S.D.N.Y. Sep. 14, 2022)]

Goldman Sachs Says Obamacare Forcing Hundreds of Thousands Into Part-Time Work

"Goldman Sachs' analysis is the latest conduct on the contentious topic of the healthcare law and part-time work, and its findings largely back up what other studies have revealed ... The bank weighed in on the question after involuntary part-time work rose sharply in recent months."

Goldman Sachs Faces Union Pension Plan Lawsuit Over Executive Pay

Excerpt: International Brotherhood of Electrical Workers Local 98 Pension Fund in Philadelphia filed suit against Goldman Sachs Group, accusing it of overpaying its executives while underpaying its shareholders and damaging its stock price.

The Guy Who Quit Goldman Sachs in a New York Times Op-Ed Now Wants to Fix Your 401(k)

"Last month, [Greg] Smith joined Blooom, an Overland Park, Kansas-based firm ... [and] will serve as the firm's president.... Blooom's main offering is a service that, for $15 a month, will take control of your 401(k) and manage it for you. (The fee drops to $1 a month for 401(k) accounts of less than $20,000.) The company uses a computer program to devise an asset allocation (bonds vs. stocks, for example) for each of its clients. It then looks at the investment options in your 401(k) plan, deciphers what they are, and separates those choices into categories. Blooom then, essentially, picks out the fund in each category with the lowest fees and puts your money there. Blooom's investing algorithm doesn't seem to take into account how those particular investments have performed."

The AMA and Goldman Sachs on Insurer Market Concentration and Decline in Price Competition

"So 99 percent of metropolitan areas have 'highly concentrated' private insurance markets, and price competition of private insurers continues to decrease as private insurers are 'more willing than ever to walk away from existing business.' Competitive pricing has almost disappeared from the private insurance market, so insurance has become a 'take it or leave it' proposition."