Goldman Sachs fined $1.83m for trading glitch
WASHINGTON (REUTERS) - Goldman Sachs Group Inc was fined US$1.5 million (S$1.83 million) to settle charges it failed to supervise its traders and allowing one futures dealer to hide billions in dollars from sight and causing a US$118 million loss.
Ex-Goldman trader Matthew Marshall Taylor in 2007 camouflaged an US$8.3 billion position, manually entering fake trades, the Commodity Futures Trading Commission (CFTC) said on Friday.
"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," the top United States (US) derivatives regulator said.
"As a result, on seven trading days in November and December 2007, Taylor circumvented Goldman's risk management, compliance, and supervision systems," the CFTC said.