Article: Goldman Sachs Fined $110 Million to Settle New York FX Probe

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Goldman Sachs Fined $110 Million to Settle New York FX Probe

Aziz Abdel-Qader, 01 May 2018

Goldman Sachs has been slapped with a $110 million fine by New York regulator and Federal Reserve in an antitrust lawsuit alleging that the bank’s traders routinely manipulated the forex market for their profit.

New York’s Department of Financial Services also ordered the investment bank to put in place a program to ensure that the alleged violation doesn’t happen again. However, Goldman is not required to hire an outside consultant to review its practices, a condition sometimes imposed on banks fined for compliance violations.

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The DFS said Goldman Sachs had insufficient oversight and controls over its FX traders, who allegedly discussed trading positions with competitors, using electronic chatrooms. The traders frequently tried to trade ahead of big foreign-exchange transactions by their clients, a practice known as front-running.

The order released Tuesday detailed multiple instances of improper behavior, which occurred from at least 2008 to 2015.

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