Goldman Sachs Reportedly Under Investigation Over Fees Charged for Futures Trading

By Jace Dela Cruz

Feb 09, 2024 04:22 AM EST

Goldman Sachs Group Inc. is reportedly facing an investigation over fees it charges for futures trading.

People familiar with the matter told Bloomberg that the top US financial regulator, Commodity Futures Trading Commission (CFTC), is currently investigating Goldman Sachs to determine if it improperly charged fees to execute some of its clients' futures trades.

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(Photo : Michael M. Santiago/Getty Images)
NEW YORK, NEW YORK - SEPTEMBER 13: The Goldman Sachs logo is seen on at the New York Stock Exchange on September 13, 2022 in New York City.

Subpoenas Sent to Goldman Sachs

The sources said the CFTC has authorized the issuance and sending of subpoenas to Goldman Sachs for info on fees charged for some futures block trades.

The investigation reportedly stemmed from a whistle-blower tip. Both Goldman Sachs and CFTC have yet to comment on the matter.

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Regulatory Issues History of Goldman Sachs

The regulatory issues history of Goldman Sachs includes some settlements involving paying substantial penalties to the CFTC. Last year, the Wall Street investment bank paid over $50 million in penalties to the CFTC to settle three cases, Reuters reported.

Goldman Sachs agreed to pay $15 million in April to settle penalties for failing to disclose adequately and communicate fairly to swap customers.

It also paid a $5.5 million in civil penalty to settle charges for failing to keep records of employees' cell phone calls and for violating a prior order issued in August.

Goldman Sachs also agreed to pay $30 million for failing to supervise numerous swap dealer activities diligently and for "unprecedented" shortcomings regarding swap data reporting.

READ MORE: Goldman Sachs Says 'The Great Disinflation' Is Under Way, Setting the Stage for 5 Eventual Fed Rate Cuts

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