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Goldman Sachs Fined $1M By CFTC

Neer Varshney

The U.S. Commodity Futures Trading Commission on Tuesday fined Goldman Sachs & Co. Ltd. — a Goldman Sachs Group Inc. (NYSE: GS) subsidiary — with $1 million.

What Happened

The New York-based investment giant was fined for failing to keep certain audio recordings required for swap dealers under CFTC regulations; the federal agency said in a statement released Nov. 26.

Goldman Sachs’ recording system malfunctioned in January 2014 and failed to record audios for nearly three weeks — until the bank discovered the glitch and had it fixed.

The glitch came to CFTC’s notice when it requested the audio recordings for that period from Goldman Sachs for an unrelated investigation, and it failed to oblige. 

The agency said that Goldman Sachs’ oversight impeded the agency’s investigation in the unspecified matter.

“Registrants must comply with the Commission’s recordkeeping requirements, as with all other applicable laws,” CFTC Enforcement Director James McDonald said in the statement. 

“When they do not, we are committed to holding them accountable. This action reinforces the critical importance of recordkeeping requirements to the CFTC’s enforcement mission.”

Price Action

Goldman Sachs closed 0.13% lower at $222.45 on Tuesday.


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