Goldman Sachs Under Investigation For Futures Trading Fees

Goldman Sachs Inc. GS finds itself under the lens of the Commodity Futures Trading Commission (CFTC), with an ongoing investigation into its futures trading fees spotlighting the bank’s operational practices.

This probe focuses on the bank’s fee structure for futures trading, following a whistleblower’s alert.

What Happened: The CFTC initiated the process by issuing subpoenas to Goldman Sachs, according to Bloomberg. The agency is seeking detailed information on its fee policies for certain futures block trades.

The violations ranged from inadequate disclosures and communication with swap customers to the failure to maintain proper records and supervise swap dealer activities.

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The New York-based firm has refrained from commenting on these developments. The CFTC has yet to make an official public statement.

Why It Matters: This investigation arrives in the wake of a tumultuous period for Goldman, marked by a series of settlements with the CFTC that cumulatively exceeded $50 million.

Despite these financial penalties representing less than a day’s revenue for the New York-based giant, the repeated infractions prompted public criticism from a CFTC commissioner, branding Goldman as a habitual violator.

Market reaction: The market response was muted, with Goldman Sachs shares holding broadly steady after the news and falling 0.3% for the day.

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