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Goldman Sachs faces inquiries over high-frequency trading, overseas hiring

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
May 9, 2014, 12:18 PM ET
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FORTUNE — Goldman Sachs Group (GS) revealed on Friday that it has undergone regulatory inquiries over its high-frequency trading and hiring practices outside the United States.

In a quarterly filing with the Securities and Exchange Commission, Goldman publicly made references to the investigations and the SEC probe for the first time.

In a list of reviews posted with the filing, Goldman said that it is the subject of inquiries and other legal issues, including “compliance with the U.S. Foreign Corrupt Practices Act … with respect to the firm’s hiring practices.” Additionally, the bank included a statement about its high-frequency trading inquiries by the SEC.

The New York-based bank also reported that it is listed as a defendant in a high-speed trading class-action lawsuit from April 18, according to MarketWatch.

MORE: Yes, Goldman Sachs really is a great place to work

Goldman’s announcement comes in the wake of investigations by the SEC, the U.S. Justice Department, the Federal Bureau of Investigation, and New York Attorney General Eric Schneiderman into high-speed traders’ impact on the stock market, according to The Wall Street Journal.

In March, the SEC issued inquiries to Goldman Sachs, along with Credit Suisse, Morgan Stanley (MS), Citigroup (C) and UBS (UBS) specifically related to the bank’s hiring practices in Asia, according to WSJ.

Goldman did not offer additional details about that investigation in its Friday filing.

About the Author
By Benjamin SnyderManaging Editor
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Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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