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Goldman Sachs fined $ 110 million for violations of currency traders

UNITED STATES (OBSERVATORY) –¬†Goldman Sachs Group Inc. will pay about $ 110 million to settle allegations of regulators related to violations committed by the bank in the foreign exchange market.

Goldman Sachs will pay $ 54.75 million to the Federal Reserve System (FRS) and the New York State Department of Financial Services, according to Dow Jones.

Regulators argue that in 2008-2013. the bank’s traders used electronic chat rooms where they exchanged information with other participants in order to obtain higher profits to the detriment of bank customers.

“Incorrect actions allowed banks and their traders to increase profits by executing contracts to the detriment of customers,” the New York regulator said in a statement.

Traders had the opportunity to adjust the prices of certain securities and help traders of other banks by providing them with confidential information about the applications submitted by clients, the regulator says.

Despite the fact that in Goldman Sachs since 2001 had procedures for controlling operations in the foreign exchange market, the issue of violations was not always raised, as required, that “continued illicit activity continued.”

World banks in recent years have paid fines of a total of several billion dollars for manipulation in the foreign exchange market.