Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Goldman Sachs To Pay $1.5 Mln For Supervision Failures

RELATED NEWS
Trade GS now with 

The U.S. Commodity Futures Trading Commission or CFTC announced that Goldman, Sachs & Co. (GS: Quote) 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.

Register
To receive FREE breaking news email alerts for Goldman Sachs Group Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks saw some volatility following the release of the Federal Reserve's monetary policy announcement on Wednesday but managed to end the day modestly higher. With the upward move, the Dow reached a new record closing high. President Barack Obama sought to emphasize in remarks on Wednesday that the American forces being deployed as part of the fight against the terrorist group ISIS will not have a combat mission. Republican Joni Ernst has moved into the lead in the potentially crucial Iowa Senate race, according to the results of a Quinnipiac University poll released on Wednesday. The poll found that 50 percent of likely Iowa voters would support Ernst if the election were held today, while 44 percent would vote for Democratic Rep. Bruce Braley.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.