logo
Share SHARE
FONT-SIZE Plus   Neg

Goldman Sachs To Pay $1.5 Mln For Supervision Failures

The U.S. Commodity Futures Trading Commission or CFTC announced that Goldman, Sachs & Co. (GS) would pay $1.5 million in civil monetary penalty to settle CFTC charges for failing to supervise a former trader, Matthew Marshall Taylor, in late 2007. The CFTC Order also requires Goldman to cease and desist from violating a CFTC regulation requiring diligent supervision.

Goldman failed to supervise diligently the trading activities of Taylor, whose trading activities on seven days in mid-November and mid-December 2007 in the e-mini S&P 500 futures contract.

CFTC filed an enforcement action in the Federal District Court against Taylor on November 8, charging Taylor with defrauding Goldman by intentionally concealing an $8.3 billion trading position in 2007. Goldman suffered a loss of over $118 million in unwinding Taylor's position, CFTC stated.

Goldman failed to have policies or procedures reasonably designed to detect and prevent the manual entry of fabricated futures trades into its front office systems.

CFTC Commissioner Bart Chilton said he thought Goldman's fine should have been at least $7.8 million. "I do not believe that the $1.5 million penalty is anywhere close to an amount representing a sufficient penalty or deterrent", Chilton stated. Fines should represent more than a "slap on the wrist" or a "cost of doing business", he added.

"Given the egregious nature of the failure to supervise adequately, combined with the high number of violative transactions, I believe that the monetary penalty should be significantly higher in order to represent a sufficient punishment, as well as to denote a meaningful deterrent to future illegal activity," Chilton said in a dissenting opinion.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Aircraft maker Bombardier Inc. (BBD_B.TO, BBD_A.TO) Tuesday revealed an agreement with Air Canada for purchase of Landmark C series for up to 75 aircraft. Air Canada has signed a Letter of Intent in February and placed purchase agreement for 45 CS300 aircraft valued at $3.5 billion, with an option for an additional 30 CS300. The total order value, including option is $6.3 billion at list price. The energy companies are required to disclose payments made to governments for the commercial development of oil, natural gas or minerals, according to rules adopted by the Securities and Exchange Commission. A business woman in California has won $10,000 in settlement with Microsoft, after she filed a lawsuit for automatically updating her business computer to Windows 10, making it slow and hard to use, The Seattle Times reported. Teri Goldstein of Sausalito, a travel agent, had filed a suit, stating that the computer at her travel agency business tried to download the upgrade without her consent...
comments powered by Disqus
Follow RTT