Goldman Sachs has been fined a total of $109.5m by US regulators to settle allegations of improperly sharing information of customers with other global banks to manipulate foreign exchange prices.
Under the settlement, the company will pay around $55m each to New York’s Department of Financial Services (DFS) and the Federal Reserve Board.
The move follows a probe that revealed that the firm failed to effectively monitor the activities of its forex traders in electronic chatrooms between 2008 and 2013. The regulators alleged that these traders discussed trading positions with their rivals during this period using code names to reap higher profit from forex trades, thereby putting clients at a disadvantage.
In order to ensure that such lapses do not recur, the company has been ordered to submit an enhanced written internal compliance programme and written internal audit programme.
DFS financial services superintendent Maria Vullo said: “DFS’s investigation revealed that Certain Goldman traders exploited the company’s ineffective oversight of its foreign exchange business by improperly sharing customer information, which allowed the bank’s foreign exchange traders and others to violate New York State law over the course of several years.
“DFS recognises the steps taken by the company to ensure compliance with applicable laws, in entering into today’s consent order and to the agreed reforms.”