Former Goldman Sachs trader Matthew Marshall Taylor pleaded guilty yesterday to hiding an $8.3 billion trading position from the bank back in 2007. He was only 29 at the time.
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.
The young trader said that he amassed huge futures bet 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.
The former trader pleaded guilty to one count of wire fraud yesterday. He faces prison time, too.