CFTC To Take A Look-See At Goldman Sachs' Clearing And Execution Division
Goldman said that it's been notified of the probe via "oral advisement," or the action known as "words exiting a human's mouth," to the layman.
In its quarterly filing with the Securities and Exchange Commission Tuesday, Goldman said that the agency's staff has orally advised it that it intends to recommend the agency bring "aiding and abetting, civil fraud and supervision-related charges" against Goldman Sachs Execution & Clearing.
The CFTC, the filing said, is basing these charges on allegations Goldman knew, or should have known, that its broker-dealer client's subaccounts at Goldman were accounts belonging to customers of the broker-dealer and not the broker-dealer's own accounts.
[WSJ]