Two men share securities regulation news

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Securities Regulation Daily, May 1, 2018

Goldman Sachs to pay $110 million for alleged FX violations

By Richard A. Roth, J.D.

Bank holding company Goldman Sachs Group, Inc., has agreed to pay $54.75 million civil penalties to the U.S. government and to the state of New York to settle allegations that it engaged in unsafe and unsound practices in its foreign exchange trading business. According to the Federal Reserve Board, the company failed to detect that its traders were using electronic chatrooms to discuss trading positions with competitors and that they were disclosing customers’ confidential information. Goldman Sachs did not admit any wrongdoing as part of the settlements.

The New York Department of Financial Services offered more informationabout the allegations against Goldman Sachs. According to DFS, the company’s traders shared confidential customer information, and they discussed coordinating their trading activities and other ways to manipulate currency prices. This allowed the traders to increase their trading profits, sometimes to customers’ detriment. The consent order details portions of several of the conversations and reveals that at least 13 traders were involved.

DFS noted that Goldman Sachs had policies in place that were intended to prevent such activity. However, those policies were not adequately enforced. In fact, one individual described as "a senior member of Goldman Sachs’ Foreign Exchange Sales Division" told a supervisor about the violations, but there was no evidence the supervisor passed the information on to the company’s compliance group.

The Fed’s consent order relates to the period of 2008 to 2012, while the conduct described by the DFS order reaches into 2013. Both orders include compliance provisions, and both have bans on further employment of at least some of the traders (although none of the individuals are named).

Companies: Goldman Sachs Group, Inc.

MainStory: TopStory Enforcement FinancialIntermediaries NewYorkNews

Back to Top

Securities Regulation Daily

Introducing Wolters Kluwer Securities Regulation Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.