A former Goldman Sachs head of mortgage trading has been banned from financial services following claims he misled customers over trading prices.
The BBC reports US regulator the Securities and Exchange Commission has banned Edward Chin, who headed up Goldman Sachs’ residential mortgage-backed securities arm. Chin has also agreed to pay $400,000 (£307,000).
The SEC says between 2010 and 2012 Chin concealed the price at which Goldman Sachs had bought the mortgage-backed securities, then sold these to customers at higher prices.
The US regulator also says Chin led customers to believe he was brokering a deal between two clients rather than selling the bank’s own inventory. Chin was fired from the company in 2012.
SEC chief of the enforcement division’s complex financial instruments unit Michael Osnato says: “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.”
Under the terms of the settlement deal Chin has not admitted to nor denied the allegations.