Goldman Sachs dealt with the devil — and just got burned by some regulatory heat.
Lloyd Blankfein’s bank paid $110 million on Tuesday to settle charges that its traders rigged currency rates for five years by using sneaky tricks to share confidential information — including nicknaming one client “Satan.”
“I remember the old days, your satan info was legendary,” one Goldman trader wrote to another in a chat room — a back channel commonly used to get around privacy rules that protect clients, according to a consent order with the New York Department of Financial Services.
It’s unclear who “Satan” was, but it appeared to be a trader at another large bank, according to the settlement, which the DFS split with the Federal Reserve.
The collusion was so brazen that one salesman scolded traders for sharing clients’ private info with traders at other banks — and questioned what the other traders were getting in return, according to the settlement.
“[D]ude you know if you need help with fix … and you want me to help … im here for you bro :-),” one Goldman trader wrote in an apparent offer to give inside information, according to the consent order.
The traders no longer work at the bank, according to a Goldman insider.
Tuesday’s settlement is the latest example of banks getting slapped with big fines after getting caught bragging about rigging the financial markets. Goldman’s punishment, however, is far less severe than what other banks got, and the bank won’t be subject to monitoring.
In 2015, Citigroup, JPMorgan Chase, Royal Bank of Scotland and Barclays paid about $5 billion after a self-described “cartel” of traders had conspired to rig currency rates. Last year, the DFS settled with Credit Suisse for $135 million and BNP Paribas for $350 million over similar charges.
“We are pleased to have resolved the Federal Reserve Board’s and New York Department of Financial Services’ respective reviews and appreciate their recognition that we have already taken significant steps to enhance our policies and procedures,” Michael DuVally, a Goldman spokesman, said in a statement to The Post.