Major Financial Institutions - Goldman Sachs, JPMorgan Chase, and Bank of America - Faced with a Fine of $53 Million by the Commodity Futures Trading Commission (CFTC) Due to Swap Reporting Inaccuracies

Financial institutions Goldman Sachs, JPMorgan Chase, and Bank of America will face civil penalties of $30 million, $15 million, and $8 million respectively, according to the agency's announcement.

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2025 September 13 . 4:50 AM

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Major Financial Institutions Goldman, JPMorgan, and Bank of America to Settle with CFTC for $53... — Major Financial Institutions Goldman, JPMorgan, and Bank of America to Settle with CFTC for $53 Million Due to Swap Reporting Inaccuracies

Major Financial Institutions - Goldman Sachs, JPMorgan Chase, and Bank of America - Faced with a Fine of $53 Million by the Commodity Futures Trading Commission (CFTC) Due to Swap Reporting Inaccuracies

In a recent development, the Commodity Futures Trading Commission (CFTC) has ordered Goldman Sachs, Bank of America, and JPMorgan Chase to pay a combined total of $53 million for violations related to swap reporting and data infrastructure requirements.

The violations, which occurred after the swap data reporting requirements went into effect, include persistent deficiencies in areas like swap data reporting, personnel reporting lines, clearing member risk management policy, notices about initial margin models and segregation, and disclosure of static material economic terms.

Goldman Sachs has been found to have supplied over 1 million inaccurate pre-trade mid-market marks or failed to provide them completely since 2013. The CFTC noted that Goldman's back-reporting of over 20 million swaps significantly underestimates the true scope of the swap data reporting failures at Goldman.

In April, Goldman agreed to pay $15 million to settle charges that the lender failed to disclose dozens of pre-trade-mid-market marks and failed to communicate to clients in a fair and balanced manner. The bank is now required to develop a written remediation plan to address the regulatory failures and retain an independent consultant to advise on necessary enhancements and evaluate the firm's progress.

Bank of America and Merrill Lynch have also been under scrutiny. Since 2015, they have not reported or misreported nearly 4 million swap transactions, as stated by the CFTC. Furthermore, they have failed to properly supervise swap data reporting to ensure timely compliance with CFTC regulations.

JPMorgan Chase has also been penalised for similar violations. The bank has failed to properly report over 40 million swap transactions since November 2017, violating the Commodity Exchange Act and CFTC regulations. JPMorgan has inaccurately reported pre-allocated trades for at least 20 million cross-currency equity swaps and has underreported swap data, including failure to report over 150,000 component foreign exchange spot transactions, misclassifying over 35,000 FX forwards as FX spots, and failure to report over 600,000 pre-allocation FX swaps.

Despite the penalties, the CFTC noted that all three banks provided substantial cooperation during the investigation, resulting in reduced civil monetary penalties. Ian McGinley, director of the CFTC's enforcement division, stated that it's well past time for swap dealers to ensure they are in full compliance with the CEA and CFTC regulations.

The focus of this article is on commercial and risk-related issues. It does not provide information about purchase licensing rights. The article serves as a reminder of the importance of regulatory compliance in the financial industry.