Friday, December 7, 2012

Goldman Fined for Failing to Block Trader’s $8.3 Billion Bet



Goldman Sachs Group will pay $1.5 million to settle U.S. Commodity Futures Trading Commission claims the firm failed to supervise a trader who hid an $8.3 billion position. One CFTC commissioner dissented, saying the penalty is far too small.

Goldman Sachs inadequately policed trades made by Matthew Marshall Taylor on seven days in late 2007, ultimately suffering more than $118 million in losses as his bets were unwound, according to the CFTC. Later, Goldman Sachs didn’t send the regulator “important information” on the incident that was provided to another industry watchdog, the CFTC told Businessweek.….

No comments:

Post a Comment