3 Major US Banks Fined 50Million Dollar: U.S. Commodity Futures Trading Commission showed how strong it was by tying up big banks like Goldman Sachs (GS.N), Bank of America (BAC.N), and JPMorgan (JPM). This set off a regulatory storm in the financial world. The regulatory watchdog said that the firm decision needed a collective payout of more than $50 million as the price for alleged wrongdoings, such as incomplete swap reporting and a long list of other problems.
Each financial giant took on its role as a penance in this economic whirlwind caused by a financial reckoning. The first company to apologize was JPMorgan, which decided to pay a civil fine of $15 million.
Bank of America followed suit and paid $8 million to make up for what it had done. Goldman Sachs, the prominent figure in this financial morality play, got the most criticism and had to give a considerable amount of money, $30 million, to help.
In the stinging exposé, the panel said that Goldman Sachs did not have enough control over some swap dealer practices. The claims showed flaws in the exclusive world of exchange data reporting that had not been seen before.
Also Read: UBS Credit Suisse Takeover: First Earnings Report Sheds Light on the New Banking Colossus
After the regulatory gavel struck down Goldman Sachs’s decision, it was up to the company to devise an official plan to fix things. The order also said they had to hire a consultantan “oracle,” if you willto look at and travel the hard road to forgiveness.
As a result of more breaches, the government will now take action against JPMorgan for swaps reporting violations. Bank of America had to go through its financial investigation simultaneously because it did not keep a close eye on swaps reporting and did not follow through on its reporting duties.
In its order, the panel thanked each banking giant for their critical work together. This offer to work together was taken into account. As a result, the fear of civil financial penalties was thankfully lessened.
This past Friday, a morality play about money was put on in the holy places of finance, where numbers and abbreviations are the most important. The Commodity Futures Trading Commission’s harsh reprimand of giants showed them how important responsibility is, even at the top of high finance.
Our Reader’s Queries
Which US banks are fined by CFTC for swap reporting failures?
The CFTC has announced that JPMorgan, Bank of America, and Goldman Sachs will pay a combined total of over $50 million to settle charges of swap reporting failures and other violations. JPMorgan will pay a civil monetary penalty of $15 million, Bank of America will pay $8 million, and Goldman Sachs will pay $30 million. These penalties have been imposed to ensure that the financial institutions comply with the regulations and maintain transparency in their operations.
What was the fine for Bank of America CFTC?
Goldman Sachs has been slapped with a hefty $30 million fine, while JPMorgan Chase and Bank of America have also been penalized with $15 million and $8 million, respectively. These penalties have been assessed for undisclosed reasons.
Is Goldman Sachs a swap dealer?
Goldman Sachs Bank USA stands out as an Insured Depository Institution among other Swap Dealers and Security-Based Swap Dealers. It’s worth noting that none of the other dealers fall under this category. Additionally, both Goldman Sachs Bank USA and Goldman Sachs & Co. are Financial Companies that offer their services as Swap Dealers and Security-Based Swap Dealers.
Can the CFTC prosecute criminal violations?
The CFTC’s Enforcement Division is responsible for probing and pursuing potential breaches of the Commodity Exchange Act and Commission rules.