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Goldman Sachs fined for supervision failure

Posted on Dec 08, 08:53PM | IANS

Goldman Sachs was ordered Friday to pay USD 1.5 million to settle charges by the US Commodity Futures Trading Commission (CFTC) for its internal control failures.

According to the CFTC's order, Goldman Sachs failed to supervise a trader who hid an USD 8.3 billion position and at last suffered more than USD 118 million in losses when unwinding the position, reported Xinhua.

"Given the egregious nature of the failure to supervise adequately, combined with the high number of violative transactions, I believe that the monetary penalty should be significantly higher in order to represent a sufficient punishment," said CFTC commissioner Bart Chilton in a statement.

He recommended increasing maximum penalty levels to USD 250,000 per violation as to individuals and USD 1 million as to entities.

As part of the settlement, Goldman Sachs said it will bolster internal risk management control and provide related information to the Commission about the case.