28 May 2017
Visit EBAday.com

Goldman Sachs fined $1.5m over supervision failures

10 December 2012  |  7227 views  |  0 Goldman Sachs logo web screen shot

Goldman Sachs has been fined $1.5 million by US regulators for failing to supervise a trader who bypassed internal systems to conceal an $8.3 billion position from the bank and defraud it of $118 million.

According to the Commodity Futures Trading Commission (CFTC), in late 2007 Matthew Marshall Taylor, while trading a firm account, entered fake e-mini futures trades into the bank's manual trade entry system to conceal and misrepresent the size of his true position.

Taylor is accused of entering the fabricated trades by bypassing internal system designed for entering and routing electronically to the CME, instead manually putting them in a different internal system that routed only to the firm's books and records, not to the exchange.

The watchdog filed charges against Taylor in Manhattan federal court in November, saying he defrauded the bank, which ended up losing $118.44 million.

Now Goldman has been fined for failing to ensure "risk management, compliance, and supervision programs comported with its obligations to supervise diligently its business as a Commission registrant".

The $1.5 million figure has been criticised by one CFTC commissioner, Bart Chilton, who says that "penalties should be calculated so that they are more than a 'slap on the wrist'".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CFTC charges former Goldman trader over $118m loss

CFTC charges former Goldman trader over $118m loss

09 November 2012  |  5185 views  |  0 comments | 2 tweets
Goldman's muppet hunt trail goes cold

Goldman's muppet hunt trail goes cold

11 October 2012  |  4155 views  |  0 comments
Former Goldman programmer arrested again over HFT code theft

Former Goldman programmer arrested again over HFT code theft

10 August 2012  |  8650 views  |  0 comments

Related company news

 

Related company information

Goldman Sachs

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comDownload the paper nowvisit www.response.ncr.com

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
13917 views comments | 53 tweets | 81 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7992 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
7449 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
7251 views comments | 12 tweets | 21 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job