Regulators fine Goldman Sachsf $1.5 million in case of ex-trader
BY Wire reports
Saturday, December 08, 2012
12/08/12 at 4:33 AM
Goldman Sachs & Co. is paying $1.5 million to settle civil charges that it failed to properly supervise a former trader who cost the firm $118 million, the Commodity Futures Trading Commission announced Friday.
CFTC member Bart Chilton dissented, calling the penalty against the Wall Street giant a "slap on the wrist."
The five-member CFTC last month filed civil fraud charges against the former trader, Matthew Marshall Taylor, saying he failed to disclose an $8.3 billion position on a futures contract that came back to hurt Goldman in December 2007. Later, Goldman Sachs didn't send the regulator "important information" on the incident.
"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," Chilton wrote in a dissent.
The agency is seeking unspecified penalties against Taylor.
Goldman Sachs said that "since these events, we have enhanced our controls."
Bart Chilton: "I believe that the monetary penalty should be significantly higher," the CFTC member wrote in his dissent.