Goldman Sachs Caught Manipulating US Dollar

Goldman Sachs Caught Manipulating US Dollar

0 Reads  By: Anon.Dos

1 goldmsnThe multi-million dollar Goldman Sachs Group – better known as GS on the New York Stock Exchange – has been ordered to pay $120,000 million after the United States Commodity Futures Trading Commission (CFTC) report found the banking giant to be manipulating and falsifying reports related to the US Dollar International Swaps & Derivatives Association Fix.

The US Dollar International Swaps & Derivatives Association Fix (ISDAFIX) is an international standard for interest rates, and also makes up a number of widely used standards for interest rate swaps and relevant derivatives, that influences the current and future Forex market rates for many currencies.

In short, Goldman Sachs was found guilty of manipulating the dollar for its own profit – and on a global scale.

1 goldman2The CFTC ordered for charges to be brought against Goldman Sachs & Co. along with Goldman Sachs Group Inc., and the head of the company’s interest rate products and trading section. “The investment bank used its own traders, including the head of Goldman’s Interest Rate Products Trading Group, to manipulate and create false reports concerning fixed-interest-rate swap rates over a five-year period,” states Sean Allocca from the CFO.

Goldman Sachs, through its traders, bids offered, and executing dealings throughout the interest rate swap spreads, among other manipulative actions; the impact of the timing and rates of these deals helped influence the US Dollar ISDAFIX, thus benefiting Goldman Sachs in its derivatives.

1 goldman3Along with the $120 million penalty (so GS can stop themselves from further reaping more benefits), the penalty also ordered them not to implement such tactics and violate the laws in any way again. This also carries the monitoring of a number policies, such as discovering and removing trading that was planned to influence swap rates, in addition to maintaining a more dependable standard distribution policy, alongside enhanced central controls.

The authority took no chances, requesting Goldman Sachs’ current administrator to present the required documentation confirming to the adeptness and the efficiency of the bank’s central regulations, and the measures aforementioned.

1 goldman4Aitan Goelman, the Director of Enforcement at the CFTC, stated this situation is the third enforcement procedure associated with the ISDAFIX standard that shows the depths of wrongdoings throughout trade, and inside Goldman Sachs. He further added that the office will continue to show aggressiveness towards protecting the stability of the ISDAFIX and other important international standards.

This article was originally by Anonhq.com

Comments

SIMILAR ARTICLES

 Author: Richard G. “Bugs” Stevens, University of Connecticut

NO COMMENTS

Leave a Reply