CFTC To Hit Goldman Clearing Unit With Fraud Action

Law360, New York (May 10, 2011, 12:09 PM EDT) -- Goldman Sachs Group Inc. revealed Tuesday that the U.S. Commodity Futures Trading Commission intends to bring an enforcement action against its clearing operation in a probe involving a broker-dealer company alleged to have improperly traded customer accounts.

In a quarterly filing with the U.S. Securities and Exchange Commission, Goldman said the CFTC's staff had “orally advised” the investment bank that it intended to bring aiding and abetting, civil fraud and supervision-related charges against Goldman Sachs Execution & Clearing LP.

The regulator alleges GSEC knew or should...
To view the full article, register now.