Ex-Goldman Trader 'Truly Sorry'

Gavel

Matthew Taylor, a former Goldman Sachs trader, pleaded guilty to concealing an unauthorized $8.3bn trading position in 2007, causing the bank to lose $118m.

Bloomberg reports that under an agreement with the government, Taylor, 34, pleaded guilty to a single count of wire fraud yesterday before U.S. District Judge William H. Pauley in Manhattan federal court. He told the judge he took the position to boost his standing, and his bonus, at Goldman Sachs.

Reading from a prepared statement, Taylor told Pauley that on December 13, 2007, he accumulated a position 10 times the amount he was allowed to take in futures contracts tied to the Standard & Poor’s 500 Index (SPX). He said he made false entries in a manual trading system to hide the position on the CME Globex electronic-trading platform used by Goldman Sachs. He said he lied when questioned about the position by other Goldman Sachs employees.

'I accumulated this trading position and concealed it for the purpose of augmenting my reputation at Goldman and increasing my performance-based compensation', Taylor said. 'I am truly sorry'.

The maximum sentence for wire fraud is 20 years in prison. Both sides agreed that federal sentencing guidelines, which aren’t binding, call for Taylor to get 33 to 41 months in prison and pay a fine of $7,500 to $75,000.

Hit the link below to access the complete Bloomberg article:

Ex-Goldman Trader Admits to Hiding $8 Billion Position

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