Goldman Sachs Group Inc. has agreed to pay $5.5 million as part of a settlement with the Commodity Futures Trading Commission (CFTC). The settlement comes after the bank violated a “cease-and-desist” provision of a prior order and failed to properly record phone lines of a trading and sales desk for a certain period of time.
CFTC’s Commitment to Enforcing Recording Obligations
According to Ian McGinley, the director of enforcement at the CFTC, this case showcases the continuous effort of the CFTC in pursuing swap dealers who fail to meet their recording obligations. McGinley further emphasized that there will be consequences for violating CFTC orders, including increased penalties.
Recognition of Goldman Sachs’ Cooperation
The settlement reached between Goldman Sachs and the CFTC also takes into account the bank’s cooperation with the investigation. This recognition reflects the importance of collaboration in regulatory matters.
Following the news of the settlement, Goldman Sachs’ stock rose by 1.8% in midday trading. Year to date, however, the stock has slipped by 3.3%. In comparison, the Financial Select Sector SPDR ETF has gained 0.6%, and the Dow Jones Industrial Average has recorded a 5.0% increase.
In summary, Goldman Sachs has agreed to pay $5.5 million to settle charges brought against it by the CFTC for violating a “cease-and-desist” provision and failing to properly record phone lines. This settlement highlights the CFTC’s commitment to enforcing recording obligations, while also acknowledging Goldman Sachs’ cooperation during the investigation.