We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Goldman Sachs to Settle Improper Trading Probe for $109M
Read MoreHide Full Article
The Goldman Sachs Group (GS - Free Report) has reached a settlement with two U.S. authorities to settle claims that its traders wrongfully shared information regarding orders of its customers, with motives of taking advantage of the market.
Goldman would be paying $54.7 million each to the New York’s Department of Financial Services and the Federal Reserve. Also, it is required to submit in writing, plans to improve internal controls and strengthen risk management program.
The Wall Street biggie was accused of using multi-party electronic chat rooms to share private information about clients using code names like “satan”, “fiddler”, etc with other global banks for a span about five years (ending early 2013), in exchange of information about potential bids or prices for particular currencies.
These improper trading activities affected currency prices, which the banks used to their advantage for achieving higher profits at the cost of customers.
In a similar probe, Citigroup (C - Free Report) and Morgan Stanly (MS - Free Report) were fined $2.96 million in January 2018 by the Securities and Exchange Commission. Both the companies were accused of misleading investors about a foreign exchange trading program by not disclosing about the actual burden to be taken by investors.
Moreover, back in 2015, Citigroup, JPMorgan Chase, Royal Bank of Scotland and Barclays had paid about $5 billion for conspiring to rig rates by forming a so called — Cartel.
Close scrutiny by financial regulators helps keep big banks from exploiting customers. Though the current settlement might impact Goldman’s financials to an extent, it remains well poised to gain from the favorable market conditions.
Shares of Goldman have gained 6% over the past year, significantly underperforming the industry’s rally of 25.4%.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Goldman Sachs to Settle Improper Trading Probe for $109M
The Goldman Sachs Group (GS - Free Report) has reached a settlement with two U.S. authorities to settle claims that its traders wrongfully shared information regarding orders of its customers, with motives of taking advantage of the market.
Goldman would be paying $54.7 million each to the New York’s Department of Financial Services and the Federal Reserve. Also, it is required to submit in writing, plans to improve internal controls and strengthen risk management program.
The Wall Street biggie was accused of using multi-party electronic chat rooms to share private information about clients using code names like “satan”, “fiddler”, etc with other global banks for a span about five years (ending early 2013), in exchange of information about potential bids or prices for particular currencies.
These improper trading activities affected currency prices, which the banks used to their advantage for achieving higher profits at the cost of customers.
In a similar probe, Citigroup (C - Free Report) and Morgan Stanly (MS - Free Report) were fined $2.96 million in January 2018 by the Securities and Exchange Commission. Both the companies were accused of misleading investors about a foreign exchange trading program by not disclosing about the actual burden to be taken by investors.
Moreover, back in 2015, Citigroup, JPMorgan Chase, Royal Bank of Scotland and Barclays had paid about $5 billion for conspiring to rig rates by forming a so called — Cartel.
Close scrutiny by financial regulators helps keep big banks from exploiting customers. Though the current settlement might impact Goldman’s financials to an extent, it remains well poised to gain from the favorable market conditions.
Shares of Goldman have gained 6% over the past year, significantly underperforming the industry’s rally of 25.4%.
Currently, Goldman sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>