Goldman Fined $1.5M Over Trader's Hidden $8B Position

Law360, New York (December 7, 2012, 5:20 PM EST) -- The U.S. Commodity Futures Trading Commission said Friday it has ordered Goldman Sachs & Co. to pay a $1.5 million civil penalty to settle allegations that its failure to properly supervise its employees allowed a rogue trader to hide an $8.3 billion trading position.

According to the CFTC, for several months in 2007, Goldman didn’t ensure that certain aspects of its risk management, compliance, and supervision programs meshed with its CFTC obligation keep a close eye on its operations, which it said allowed former Goldman trader...
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