Guy Who Was Fired By Goldman Sachs For Amassing “Inappropriately Large” Position Welcomed With Open Arms At Morgan Stanley

Back in December 2007, things weren’t going so well for Matthew Marshall Taylor. He’d just been fired from Goldman Sachs and not only was he out of a job, but his prospects for finding a new one didn’t look so hot, on account of the fact that Goldman planned to put a note in his file detailing the reason he’d been let go– “for building an ‘inappropriately large’ proprietary trading position”— and it seemed unlikely anyone at the firm would be open to serving as a reference for him moving forward.  Three months later, however, one bank told MMT that there was room for him at their inn. Morgan Stanley, apparently having decided the incident at Goldman was but an asterisk in what would be a long and fruitful career, told Taylor to come on down, employing him for over four years until he left in July of his own accord and not because of any legal issues relating to his work at Goldman Sachs.

Taylor was accused yesterday by the U.S. Commodity Futures Trading Commission of concealing an $8.3 billion position in 2007 that caused Goldman Sachs to lose $118 million. Goldman Sachs fired Taylor in December 2007 and cited “alleged conduct related to inappropriately large proprietary futures positions in a firm trading account,” in a so-called U-5 form, according to a Financial Industry Regulatory Authority document. Morgan Stanley, which had employed Taylor before he joined Goldman in 2005, re-hired him in March 2008, according to the records.

Taylor, who handled client-related equity derivative trading at Morgan Stanley, left the firm in July, according to Mark Lake, a company spokesman in New York. His departure wasn’t related to the CFTC complaint filed against Taylor yesterday in federal court, according to a person familiar with the situation, who requested anonymity because the information is private. Taylor concealed the position by bypassing the firm’s internal system for routing trades to the Chicago Mercantile Exchange and manually entering fabricated futures trades in a different internal system, according to the complaint. Goldman Sachs, which wasn’t identified in the CFTC lawsuit, said Taylor allegedly made the trades while employed at the firm.

Anyway, since MMT is a free agent at the moment, if any other banks would like to overlook the blip, please do get in touch directly. Citi, BofA? At least just think about it. He was good enough for Morgan Stanley, he should be good enough for you.

Morgan Stanley Hired Goldman Trader Accused Of Hiding Position [Bloomberg]
CFTC Charges Matthew Marshall Taylor with Fraud for Fabricating and Concealing Trades from His Employer and Obstructing Their Discovery [CFTC]

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29 Responses to “Guy Who Was Fired By Goldman Sachs For Amassing “Inappropriately Large” Position Welcomed With Open Arms At Morgan Stanley”

  1. Edmond_Dantes says:


    Howie Hubler

  2. Jerome Kerviel says:

    Yes, but tant pis pour toi if they make you pay it all back.

  3. Hey Now says:

    Come on over, I think we can squeeze you in. Wait……hold on…… we can't. Wait, …..wait, yes, …..yes we actually can. I think. Definitely maybe.


  4. ILoveLamp says:

    I'm guessing that position would not have been "inappropriately large" if it had MADE $118MM, instead of losing it.

  5. Just Wondering says:

    Have we ever found out what Matt's middle name is?

  6. Dickless Bove says:

    We could definitely use a guy like you here at Rochdale Securities once we raise a little capital. Won't take a minute, really.

  7. guest says:

    I love that 'always with the three names' has numerous entries

  8. Guest says:

    Never liked the guy.

    -Pablo Salami

  9. Abe Shorey says:

    I think we found our new Treasury Sec.

  10. Greg Smith, D-BAG says:

    Clearly, this never would've happened had MMT been receiving my daily market commentary emails.

  11. guest says:

    Can someone who knows more about S&T than I do (which is almost everyone) explain to me how someone in "client-related" trading had a prop position at all, let alone one that big?

  12. blurb says:

    MS has a very sharp HR (not sure they know much about sharp ratios though)