Goldman Sachs has paid a $120 million fine after settling with the US Commodity Futures Trading Commission (CFTC) over accusations its traders attempted to manipulate the ISDAfix interest rate benchmark setting. Goldman neither admitted nor denied the charges in settling.
The CFTC issued an Order finding that, beginning in January 2007 and continuing through March 2012 Goldman attempted, by and through certain of its traders in New York, on many occasions to manipulate and made false reports concerning the US Dollar ISDAfix. It adds that Goldman’s “unlawful conduct” involved multiple traders, including the head of the bank’s interest rate products trading group in the US.
Five banks have filed to settle a class action lawsuit brought against them over FX benchmark manipulation claims.
According to papers filed in New York, the settlement agreements resulted from “arm’s-length negotiations between highly experienced counsel and fall within the range of possible approval”.
Morgan Stanley has agreed to pay $50 million; Societe Generale $18 million; Standard Chartered Bank $17.2 million; Royal Bank of Canada $15.5 million; and Bank of Tokyo-Mitsubishi UFJ $10.2 million. All five banks continue to deny wrongdoing.
Former European head of FX spot trading at Goldman Sachs, Mitesh Parikh, has been told he must submit himself to questioning by US authorities over the benchmark manipulation lawsuit brought against a group of banks.
The class action lawsuit was brought against 15 banks, 14 of which have settled. The remaining bank yet to agree a settlement – which was finalised in New York earlier this month – is Credit Suisse. In a judgement released by the UK High Court this week, it is revealed that Parikh has lost his application to avoid giving oral testimony in New York.