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CFTC fines Goldman Sachs over supervisory, reporting violations

Dec 10 2012 Stuart Gittleman, Compliance Complete

The Commodity Futures Trading Commission fined Goldman Sachs & Company $1.5 million on Friday for failing to diligently supervise a suspected rogue trader and for not fully and timely reporting the incident to its regulators. One commissioner, Bart Chilton, said he would have imposed a much higher fine. Without admitting or denying the CFTC's findings, Goldman Sachs consented to the fine and to an order that it cease and desist from violating CFTC Regulation 166.3. The CFTC found that Goldman failed to ensure that certain aspects of its risk management, compliance and supervision programs complied with its obligations to supervise diligently its business as CFTC-registered futures commission merchant. This enabled an employee, Matthew Marshall Taylor, to amass a position as high as $8.3 billion in November and December 2007 the e-mini S&P 500 futures contract on the Chicago Mercantile Exchange that cost Goldman over $118 million to unwind. Goldman failed to detect and prevent

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