Goldman Sachs Group Inc. (GS) , the Wall Street firm, agreed to pay $109.5 million to the Federal Reserve and New York State Department of Financial Services over violations in foreign-exchange markets.
Investigators with the state determined that Goldman engaged in "unlawful, unsafe and unsound conduct by failing to implement effective controls over its foreign-exchange business," according to a press release Tuesday from the Department of Financial Services.
The violations included improperly sharing customer information with other global banks, according to the press release.
"Certain Goldman traders exploited the company's ineffective oversight of its foreign exchange business," Financial Services Superintendent Maria Vullo said in the statement.
The Fed said in its own press release that Goldman was fined over "deficiencies in Goldman's internal controls and oversight of traders who buy and sell U.S. dollars and foreign currencies for the firm's own accounts and for customers."
According to the Fed's press release, traders at the New York-based firm used "electronic chatrooms to communicate with competitors about trading positions." Goldman is required by the order to improve controls and compliance risk-management for its foreign-exchange trading, according to the release.
Under the coordinated actions, each regulator fined Goldman $54.75 million, according to the press releases, for a total of $109.5 million.