Goldman's contract with the MTA -- which runs New York City's buses, subways, commuter railroads and several major bridges and tunnels -- expired in 2009 and since then has been renewed on a month-by-month basis, the authority said.
The MTA began a search for a new financial adviser last June and is due to announce its pick on Monday morning at its monthly budget meeting. The full MTA board will vote to approve the choice on Wednesday.
A spokesman at Goldman Sachs declined to comment.
Goldman has been charged with fraud by the U.S. Securities and Exchange Commission over the design and marketing of a subprime mortgage securities product, but the source said the MTA's decision was unrelated to Goldman's recent troubles.
The MTA faces an estimated deficit of $537 million next year, and that figure could rise to as high as $860 million, the state comptroller said in a new report last month.
The agency has been criticized for its failure to rein in construction cost overruns and has some massive projects under way.
(Reporting by Edith Honan; Editing by Leslie Adler and Diane Craft)
((edith.honan@thomsonreuters.com; 646 223 6323;)
Keywords: NEWYORK MTA/GOLDMAN
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
