FX badness.
Yesterday Goldman Sachs Group Inc. agreed to pay about $110 million for doing bad things in foreign-exchange trading, paying about $55 million each to the Federal Reserve and the New York State Department of Financial Services. (Disclosure: I used to work at Goldman.) This is the same complex of FX badness that we’ve talked about before — basically, a bunch of traders at all the big banks had chat rooms where they shared confidential information about customer trades, allowing the banks to coordinate their trading to profit at the expense of the customers — and there’s nothing really new here substantively.
