View more on these topics

Ex-Goldman Sachs trader banned and agrees £300k settlement

Stockmarket-Performance-Business-700x450.jpg

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 bough the mortgage-backed securities, then sold these to customers at higher prices.

The US regulator also says Chin led to 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

Recommended

4

Lack of evidence forces FCA to drop Lloyds trader investigation

A Lloyds trader will no longer face investigation by the FCA for manipulation of the government bond market after the regulator decided there was no case for him to answer. According to the Financial Times, the FCA began investigating head of gilts trading Tony Gray in 2015. The probe was only focused on Gray, it was […]

Stock-market-downgrade-Stockmarket-700.jpg

Traders ‘competed to win the Libor cup’

The High Court has heard how bankers from Lloyds Banking Group and Royal Bank of Scotland competed against each other to earn the title “Libor legend”. The Sunday Times reports the claims have been made as part of a court case against RBS by the developer Property Alliance Group, which is claiming it was missold […]

FCA-FSA-Airplane-700x450.jpg

FCA fines director £59k for insider trading

A director has been fined £59,557 for insider trading and publicly censured for improper disclosure in which he attempted to avoid a loss of £242,000. Gavin Breeze – who holds several directorships at private companies – attempted to sell his entire 8 per cent stack in ecommerce business MoPowered, when the chief executive of the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment