24/7 Newsfeed

Put Reason 24/7 on Your Site

RSS

Follow Reason 24/7 on Twitter and via RSS

Goldman Sachs Fined for Failing to Block Trade

Goldman Sachs Group Inc. 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 said.

“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,” Bart Chilton, one of three Democrats at the CFTC, wrote in a dissent posted on the regulator’s website. Fines should represent more than a “slap on the wrist,” he said.

Source: Businessweek. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

advertisement