Goldman Sachs was ordered on Friday to pay 1.5 million dollars to settle charges by the U.S. 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 8.3 billion dollars position and at last suffered more than 118 million dollars in losses when unwinding the position.
"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 250,000 dollars per violation as to individuals and 1 million dollars 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.