The UK’s banking watchdog has reportedly called in a Big Four accountancy firm to examine Goldman Sachs’ regulatory reporting in its London operation.
The Prudential Regulation Authority (PRA) has hired audit firm PwC to carry out a so-called skilled person’s report on Goldman Sachs International, Sky News reported.
The appointment follows concerns about supervision at some of the City’s largest banks and the quality of information being provided to the PRA.
Last month Sky reported that Bank of America Merrill Lynch and Morgan Stanley were being assessed in a similar manner.
Regulators are able to commission a third party to carry out a review of aspects of a regulated firm’s activities if they are concerned or want further analysis.
Last year, Citi was fined £44m by the PRA for “significant errors” in reporting its capital and liquidity positions between 2014 and 2018.
The problems were “serious and widespread in nature” and meant the lender had not provided an accurate picture of its financial position.
Sky cited sources that said the PRA had become concerned other major banks may have made similar errors.
The PRA warned in October it would “consider the full range of supervisory responses” if it had concerns about the quality of their financial reporting.
The PRA was contacted for comment. Goldman Sachs declined to comment.