Ex-Goldman Trader Was Going To Be Paid $2 Million At Age 29 But He Wanted To Boost His Rep So He Amassed An $8.3 Billion Bet

Matthew Marshall Taylor

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.   

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