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Goldman Sachs to Pay $5.5 Million Due to Pandemic-Era Audio Recording Failures

Posted on October 11th, 2023 at 10:44 AM
Goldman Sachs to Pay $5.5 Million Due to Pandemic-Era Audio Recording Failures

From the desk of Jim Eccleston at Eccleston Law 

The Commodity Futures Trading Commission (CFTC) has imposed a $5.5 million fine on Goldman Sachs for alleged failures in recording and retaining mobile device calls made by its traders at the beginning of the Covid-19 pandemic.

This action reflects the continued regulatory scrutiny Wall Street firms face regarding their record-keeping practices, as the Wall Street Journal reported. CFTC Commissioner Kristin Johnson stated, "The civil monetary penalty imposed today is quite literally less than the profit Goldman can earn by the end of the day today."

In recent years, regulatory focus on record-keeping violations has intensified within the Wall Street sector. Earlier this month, several financial firms, including Wells Fargo and BNP Paribas, admitted to paying approximately $555 million to the SEC and CFTC for their employees' use of banned messaging apps that violated record-keeping rules.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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