Three news to start your week: April 10
Goldman Sachs fined $3 mln by FINRA over mismarking orders
(Reuters)
Wall Street's self-funded watchdog, the Financial Industry Regulatory Authority (FINRA), penalized Goldman Sachs Inc $3 million for mislabeling stock orders as "long" instead of "short."
FINRA attributed the mistake to a missing line of computer code during an upgrade to Goldman's automated trading software used to simplify order flow.
Goldman mismarked about 60 million short sale orders from October 2015 to April 2018; nearly 8 million were executed, totaling over a billion shares.
Signature Bank’s closure not related to crypto: NY Finance Regulator
(The Wall Street Journal)
The head of the New York State Department of Financial Services said that the regulator's move to close Signature Bank last month was not just because it had customers in the cryptocurrency space. Instead, it was because of problems with the bank's liquidity.
Superintendent Adrienne A. Harris called the events leading up to the failure of the Signature Bank last month "a new-fashioned bank run." At the time, the bank had a lot of deposits that weren't insured and didn't have a way to handle withdrawal requests.
"The idea that the taking possession of Signature was about crypto and this is 'Choke Point 2.0' is really ludicrous," Harris said last week.
ChatGPT exits Italy after GDPR violation warning
(Compliance Week)
The Italian data protection authority (DPA) shut down ChatGPT in the country, claiming the artificial intelligence (AI) chatbot violates European Union privacy laws and has no control to stop interacting inappropriately with young children.
Garante ordered OpenAI, the U.S.-based developer of the chatbot, to stop processing the data of Italian citizens while it investigates the company's activities in the country.
Under the General Data Protection Regulation (GDPR), OpenAI has 20 days to address the DPA's concerns. After that, it could be fined up to $21.8 million or 4 percent of its annual sales if it doesn't.
