Goldman Sachs hit with $1M fine for not recording traders' phone calls
The CFTC said Goldman did not have certain audio recordings needed for a separate investigation
The U.S. Commodity Futures Trading Commission (CFTC) on Tuesday hit Goldman Sachs with a $1 million fine for not recording traders' phone calls.
The CFTC said in a press release that the investment banking company did not keep certain audio recordings -- as swap dealers are required to do under CFTC requirements -- in 2014 after recording hardware on the company's phone lines prematurely restarted and failed to record.
"Registrants must comply with the Commission’s recordkeeping requirements, as with all other applicable laws," CFTC Enforcement Director James McDonald said in a statement. "When they do not, we are committed to holding them accountable."
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"This action reinforces the critical importance of recordkeeping requirements to the CFTC’s enforcement mission," McDonald added.
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The CFTC became aware of the issue after it requested audio calls from Goldman Sachs relating to a separate investigation, the release noted.
The agency implemented its audio recording requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was established in 2010 in an effort to regulate the financial market and protect consumers after the 2008 financial crisis.
Goldman began using recording hardware on its phone lines in 2013, but it prematurely restarted in January 2014. The firm was unaware of the issue for three weeks at the time, according to the release.
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Goldman Sachs did not immediately respond to FOX Business' request for comment.