Ex-Goldman Sachs trader barred from industry www.bbc.com
A former head of Goldman Sach's mortgage trading unit has been barred from the industry by US regulators.
Edward Chin, former head of residential mortgage-backed securities, was accused by the US Securities and Exchange Commission (SEC)of misleading customers, causing them to pay more.
In addition to the ban, he has agreed to pay $400,000 (£306,515).
His conduct began in 2010 and continued until he left Goldman in 2012, the SEC said.
According to the SEC, between 2010 and 2012 Mr Chin generated extra revenue for the bank by concealing the prices at which it had bought such mortgages and then selling them to Goldman customers at higher prices.
He also allegedly misled customers about who they were buying the securities from. He allowed them to believe he was brokering a deal between two clients when he was actually selling them products from Goldman's own inventory.
"[Mr] Chin repeatedly abused his fundamental duty to serve as an honest transmitter of market information so he could increase Goldman's trading profits and, indirectly, his own compensation," said Michael Osnato, chief of the SEC Enforcement Division's Complex Financial Instruments Unit.
Mr Chin was fired from Goldman Sachs in 2012.
Under the terms of the deal Mr Chin has not admitted to nor denied the allegations.
The settlement does not affect the bank or its current traders.
Published Date:2016-08-17