Federal and state regulators on Tuesday fined Goldman Sachs Group
$110 million for the firm’s “unsafe and unsound practices” in its foreign exchange trading business. The Federal Reserve and the New York State Department of Financial Services said an investigation found Goldman had failed to properly supervise its traders’ behavior in electronic chatrooms from 2008 until early 2013. During that time, Goldman didn’t detect when traders communicated with competitors about trading positions or when they disclosed confidential client information. Financial Services Superintendent Maria Vullo said in a statement that Goldman foreign exchange traders sometimes used code names “to discreetly share confidential customer information [and] discussed potentially coordinating trading activity and other efforts that could improperly affect currency prices or disadvantage customers.” The firm agreed to implement effective controls.