WASHINGTON (AP) — 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 more than $118 million.
The Commodity Futures Trading Commission announced the action Friday. The CFTC says Goldman also agreed to make changes in its supervision procedures for futures trading.
The CFTC last month filed civil fraud charges against the former trader, Matthew Marshall Taylor. Regulators said he failed to disclose an $8.3 billion position on a futures contract that came back to hurt Goldman in December 2007. The agency is seeking unspecified penalties against Taylor.
Taylor’s trading didn’t affect customer funds, Goldman spokesman Michael DuVally said Friday. The firm discovered his activity on Dec. 14, 2007. Taylor eventually admitted misconduct and was terminated, DuVally said.
“Since these events, we have enhanced our (internal) controls,” DuVally said. “We’re pleased to have settled this matter.”