Bloomberg reports that Taylor is to appear in Manhattan federal court later today. He was accused November 8th in a lawsuit by the U.S. Commodity Futures Trading Commission of concealing an $8.3bn position in 2007 that caused New York-based Goldman Sachs to lose $118m.
Morgan Stanley hired Taylor in March 2008 after Goldman Sachs fired him three months earlier. Goldman cited 'alleged conduct related to inappropriately large proprietary futures positions in a firm trading account', in a so-called U-5 form, according to a Financial Industry Regulatory Authority document.
Reuters reports that Taylor's move on Wednesday is related to criminal charges that are expected to come from federal prosecutors in New York. He is expected to plead guilty to those charges, the sources said. It was not clear precisely what he will be charged with.
Goldman paid $1.5m last year to settle charges that it had failed to appropriately supervise Taylor. The firm has since put in place procedures to catch wayward trading activity more quickly.