The US Commodity Futures Trading Commission (CFTC) has imposed a total penalty of more than US$50 million on Goldman Sachs, JP Morgan, and Bank of America for “a variety of swap dealer activities including failures related to swap data reporting”. Goldman Sachs was dealt the highest fine at US30 million for lapses dating back to 2013.
According to CFTC, Goldman Sachs has “failed to properly resource and prioritise CFTC compliance”, resulting in “supervisory deficiencies” that impacted a range of its activities, including swap data reporting, pre-trade mid-market mark (PTMMM) disclosures, and its clearing member risk management policy. The commission claims that “these deficiencies were pervasive, and in some instances, have persisted since 2013”. This penalty comes on the heels of an earlier one where Goldman Sachs was fined US$3 million for failures that included an error in its post-trade surveillance.
JP Morgan and Bank of America were penalised US$15 million for ”violations related to swaps reporting” and US$8 million for “failing to diligently supervise swaps reporting and failing to comply with swaps reporting obligations” respectively.