Ex-Goldman Trader Was Going To Be Paid $2 Million At Age 29 But To Boost His Rep He Amassed An $8.3 Billion Bet
As a result, Goldman ended up losing than $100 million unwinding the position, according to the Commodity Futures Trading Commission. Goldman also had to pay a $1.5 million civil penalty late last year for failing to diligently supervise Taylor.
The young trader said that he amassed huge bet in S&P 500 e-mini futures because he wanted to augment his reputation at the firm and increase performance-based compensation, The Wall Street Journal reported.
But get this...
Taylor was going to be paid almost $2 million that year anyway. Prosecutors said he had a $150,000 base salary and an expected $1.6 million bonus, according to the WSJ.
According to FINRA records, Taylor left Goldman in 2008 and went to Morgan Stanley where he worked until August 2012. Taylor had previously worked at Morgan Stanley from 2001 to 2005 before joining Goldman.
The former trader pleaded guilty to one count of wire fraud yesterday. He could face up to 20 years in prison. The sentencing is scheduled for July 26.