Goldman to Pay $120 Million in Probe Over Fixing BenchmarksBy
Bank accused of attempting to manipulate ISDAfix swap rates
Goldman is third bank to settle claims over global benchmark
Goldman Sachs Group Inc. agreed to pay $120 million to resolve U.S. Commodity Futures Trading Commission claims that the bank attempted to manipulate global benchmarks for interest-rate products from 2007 to 2012.
“Goldman’s unlawful conduct involved multiple traders, including the head of Goldman’s Interest Rate Products Trading Group in the United States,” the CFTC said Wednesday in a statement.
Goldman traded in interest rate swap spreads, U.S. Treasuries and Eurodollar futures contracts to deliberately move ISDAfix, a global interest-rate benchmark used by banks, the CFTC said. The New York-based bank, which didn’t admit or deny the regulator’s findings, agreed to improve its internal controls as well as having a company supervisor verify compliance, the CFTC said.
The settlement is the third tied to the benchmark. Citigroup Inc. agreed to pay $250 million in May to resolve CFTC manipulation allegations, while Barclays Plc paid $115 million last year.
“We are pleased to have resolved these matters and have already taken steps to enhance our policies and procedures,” Michael DuVally, a Goldman Sachs spokesman, said in an e-mailed statement.
— With assistance by Dakin Campbell