Sept 19 Goldman Sachs was hit by a
clerical error at the New York Federal Reserve that left the
bank without any of the three-month Treasury bills it ordered at
a debt auction, the Financial Times reported, citing people
familiar with the matter.
The newspaper said Goldman had suffered a loss due to the
mix-up but did not specify the amount of the loss. Goldman
declined to comment to the newspaper.
An official at the New York Fed, which conducts auctions for
the Treasury, had to record orders manually following a computer
malfunction on Sept. 9. In addition to receiving none of the
three-month bills it wanted, Goldman also got more six-month
Treasury bills than it had ordered, the FT said.
As a result of the error, Goldman went over the 35 per cent
Treasury limit that a bidder can acquire in an auction due to
over allotment of the six month bills, the paper said.
The Treasury waived that rule while letting the results of
the auction stand, and there will likely be no additional
remedies for the bank, a person told the paper.
The Treasury's Public Debt bureau acknowledged in a
statement to the Financial Times that there was a technical
issue, but did not specify which bidder was affected. ()
Goldman and Treasury's Public Debt bureau could not
immediately be reached for comment by Reuters outside of regular
U.S. business hours.