Wall Street: Hiding $8 Billion In Trading Losses Apparently Doesn't Hurt Your Job Prospects

It took Matthew Marshall Taylor less than three months to land a job at Morgan Stanley (MS) after Goldman Sachs disclosed in a public filing that he had been fired for building an “inappropriately large” proprietary trading position according to a Bloomberg report.

Taylor was accused Nov. 8 by the U.S. Commodity Futures Trading Commission of concealing an $8.3 billion position in 2007 that caused Goldman Sachs to lose $118 million.

Goldman Sachs fired Taylor in December 2007 and cited “alleged conduct related to inappropriately large proprietary futures positions in a firm trading account,” in a so-called U-5 form, according to a Financial Industry Regulatory Authority document. Morgan Stanley, which had employed Taylor before he joined Goldman in 2005, re-hired him in March 2008, according to the records.

Morgan Stanley hired Taylor after a subprime mortgage- related trading position resulted in a $9.4 billion writedown in December 2007, which caused the New York-based company to oust co-president Zoe Cruz and sell a $5 billion stake to state- controlled China Investment Corp.

Find out more at http://www.bloomberg.com/news/2012-11-09/morgan-stanley-hired-goldman-trader-accused-of-hiding-position.html