SEC, NYSE settle with Goldman Sachs

NEW YORK (CNNMoney.com) -- The Securities and Exchange Commission and NYSE Regulation settled enforcement proceedings against Goldman Sachs over an illegal trading scheme, the company said Wednesday.

Goldman (Charts) brokers failed to accurately mark stock trades, allowing customers to illegally sell securities short prior to public offerings of companies' shares, said the groups.

The SEC and NYSE will require the investment bank to pay $2 million in civil penalties and fines.

The two Goldman customers who were involved in the illegal short sales earlier paid over $1 million in disgorgement and civil penalties.

The company reported record quarterly earnings and revenue Tuesday. (Full story)

Subprime: The risk to Wall Street

Lehman's earnings top forecasts