Tia year’s presidential election has been full of controversy, and more will come, but rarely do private corporations and investment banks are so openly participate in the process. Investment bank Goldman Sachs (NYSE: GS) has reportedly banned its most high-ranking employees from giving money to certain political campaigns including the campaign of the Republican presidential candidate Donald Trump and Mike Pence.
Politico has reported that the investment bank includes in this restriction partners of the firm.
The policy was designed to prevent Goldman Sachs employees from violating pay-to-pay rules. Violation of such rules can hurt the firm’s reputation. In this case, as explained by CNBC, a pay-to-pay violation may happen if campaign contributions made by employees in the investment bank are an attempt to influence the awarding of lucrative public contracts.
This means that the ban includes donations to any campaign that has any current federal or state official, which leads us to the Trump campaign. Trump’s vice presidential candidate, Mike Pence is the current governor of Indiana, making any donations to the campaign a conflict of interest as far as Goldman Sachs is concerned.