Public statement relating to Settlement Agreement between the Central Bank of Ireland and Goldman Sachs Bank (Europe) plc

• Date: 12 September 2011

Banc Ceannais na hEireann

Central Bank of Ireland

Eurosystem

PO BOX 559

T +353 1

224

4000

Dame Street

F +353 1

671

6561

Dublin 2

Settlement Agreement between the Central Bank of Ireland

and Goldman Sachs Bank (Europe) plc

The Central Bank of Ireland ("the Central Bank") has entered into a Settlement Agreement

with effect from 08 September 2011 with Goldman Sachs Bank (Europe) plc ("the firm"), a

regulated financial service provider in relation to breaches of regulation 16(3) of the

European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992

("the Regulations").

These breaches related to:

1)

the firm failing, during the period 16 July 2008 to 17 December 2010, to comply with

regulation 16(3)(b) of the Regulations in that the firm's processes failed to manage,

monitor and report accurately its regulatory counterparty risk capital requirement; and

2)

the firm failed, during the period 16 July 2008 to 17 December 2010, to comply with

regulation 16(3)(c) of the Regulations in that the firm's internal control mechanism

failed to identify that its regulatory counterparty risk capital requirement was

incorrectly calculated.

The Central Bank reprimanded the firm and required it to pay a monetary penalty of

€160,000.

On 13 December 2010 the firm disclosed errors in calculations of the firm's counterparty risk

requirement to the Central Bank. This issue arose due to an error in the firm's in-house

regulatory counterparty risk capital requirement calculation, in that it did not correctly