Goldman blocked at Treasury auction by technical glitch

A technical glitch in the Treasury's debt-auction system blocked Goldman Sachs' (GS) multi-billion dollar order for 90-day bills (BIL), altering pricing and leaving the bank empty-handed. A total of $30B in bills were moved, but Goldman - one of 21 primary dealers - was left out. When Treasury officials noticed the  botched order, they allotted Goldman more six-month paper, which was being sold at the same time.

The snafu looks to have cost Treasury some money as the paper was priced to yield 0.02% at the auction vs. pricing of 0.013% prior to the sale.

The Treasury's auction system hasn't broken down in decades, say those familiar with it, and four auctions held since have come off just fine.

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Comments (1)
  • Lakeaffect
    , contributor
    Comments (1454) | Send Message
    What's the problem? Doesn't Goldman just get a do-over of the entire auction?
    19 Sep 2013, 03:33 PM Reply Like
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