Goldman Sachs (NYSE:GS) has been hit with a US$5.5 million fine for failing to record and retain communications between swap traders in 2020.
Thousands of calls ended up not being recorded due to an issue with new software installed in March 2020, according to the US Commodity Futures Trading Commission.
This was not solved until June 2022, the commission continued, placing Goldman in violation of the regulator’s record-keeping provisions.
Goldman had been ordered previously to pay US$1 million in 2019 over a software issue recorded five years earlier, with the commission warning the bank over future failures at the time.
“As this case demonstrates, the Commodity Futures Trading Commission will continuously pursue swap dealers that fail to meet their recording obligations,” enforcement director Ian McGinley said.
“There will be consequences for violating Commodity Futures Trading Commission orders, including increased penalties.
“We are committed to holding swap dealers accountable when they fail to comply with their regulatory obligations and fail to abide by obligations imposed by prior [...] orders.”
Rival bank Morgan Stanley (NYSE:MS) also faced a fine over communications earlier this month, after UK energy regulator Ofgem found the bank had failed to prevent commodity traders from discussing deals over encrypted messaging service WhatsApp.