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Three of the largest U.S. financial institutions agreed to pay penalties totaling $53 million across settlements with the Commodity Futures Trading Commission (CFTC) addressing alleged swap reporting failures among their respective affiliates.
Goldman Sachs was fined $30 million, while JPMorgan Chase and Bank of America were assessed penalties of $15 million and $8 million, respectively. The CFTC announced the settlements in a press release Friday, in which Ian McGinley, director of the agency’s Enforcement Division, said it is “well past time for swap dealers to ensure they are in full compliance” with CFTC regulations.
At Goldman Sachs & Co., some deficiencies uncovered by the CFTC were found to have persisted over the course of the last decade. The agency’s investigation revealed supervisory weaknesses in areas including swap data reporting, pre-trade mid-market mark (PTMMM) disclosures, personnel reporting lines, clearing member risk management policies, notices regarding initial margin model and segregation, and disclosure of static material economic terms, per the CFTC’s order.
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