economics reporter, federal and state regulators on Tuesday fined Goldman Sachs Group. GS,.97 110 million for the firm's "unsafe and unsound practices" in its foreign exchange trading business. The Board levied the fine for deficiencies in Goldman's internal controls and oversight of traders who buy and sell.S. Tags: Fed, foreign exchange (FX), Goldman Sachs, trading business, United States, US Federal Reserve, USA. Categories: Economy, Politics, United States. Subscribe to MarketWatch's free Bulletin emails. Goldman Sachs Group Inc. Photo: Richard Drew, Associated Press, goldman Sachs will pay.75 million to both the Federal Reserve Board and the New York Department of Financial Services, Federal and state regulators said. World banks in recent years have paid fines of a total of several billion zero spread forex account dollars for manipulation in the foreign exchange market. During that time, Goldman didn't detect when traders communicated with competitors about trading positions or when they disclosed confidential client information.
According to regulators, in the bank's traders used electronic chat rooms to talk about customer currency orders in order to obtain higher profits. Will pay about 110 million to settle claims that it used "unsafe and unsound practices" in its foreign exchange trading business.
The firm failed to detect and address its traders' use of electronic chat-rooms to communicate with competitors about trading positions, including around benchmark fixes, and failed to detect and address the disclosure of confidential client information. The Board coordinated its enforcement action with the New York State Department of Financial Services. Monday, May 7th :07 UTC, full article, the firm failed to detect and address its traders' use of electronic chat-rooms to communicate with competitors about trading positions, said the Fed report. Financial Services Superintendent Maria Vullo said in a statement that Goldman foreign exchange traders sometimes used code names "to discreetly share confidential customer information and discussed potentially coordinating trading activity and other efforts that could improperly affect currency prices or disadvantage customers." The firm agreed. The Board's order requires Goldman to improve its controls and compliance risk management for the firm's FX trading. Have breaking news sent to your inbox. The United States Federal Reserve Board announced that it has fined The Goldman Sachs Group, Inc.,.75 million for the firm's unsafe and unsound practices in its foreign exchange (FX) trading business.