Goldman in settlement talks with U.S. over trading loss

Sat Nov 10, 2012 9:54am EST

Traders work at the Goldman Sachs stall on the floor of the New York Stock Exchange, October 16, 2012. REUTERS/Brendan McDermid

Traders work at the Goldman Sachs stall on the floor of the New York Stock Exchange, October 16, 2012.

Credit: Reuters/Brendan McDermid

(Reuters) - Goldman Sachs Group Inc is in settlement talks with the U.S. government over an $8.3 billion position that one of the investment bank's traders had concealed five years ago, according to a published report.

The Financial Times said a settlement with the U.S. Commodity Futures Trading Commission, which regulates U.S. futures and options markets, is expected in the coming weeks, citing two sources familiar with the plans.

Goldman declined to comment and the CFTC could not be reached for comment.

The planned settlement follows Thursday's announcement from the regulator that accused ex-Goldman trader Matthew Marshall Taylor of hiding a large position in S&P 500 e-mini futures contracts. Taylor has denied the accusations, his lawyer said on Thursday.

(Reporting by Debra Sherman; Editing by Jackie Frank)

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Comments (4)
SanPa wrote:
Nothing less than 1x the amount hidden.

Nov 10, 2012 10:59am EST  --  Report as abuse
shqipo wrote:
And where does the settlement money go?

Nov 10, 2012 12:14pm EST  --  Report as abuse
breezinthru wrote:
A few scholarly discussions between lawyers to arrive at a comfortable fine, then guilty parties can be rewarded for their previous efforts on behalf of the bank, just like Citibank.

We need to build a really nasty federal prison that nobody wants to go to… and then use it. Fines are not an effective deterrent to bad behavior.

Nov 10, 2012 12:50pm EST  --  Report as abuse
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