A former senior trader at Goldman Sachs has agreed to pay $400,000 and be barred from the securities business for at least two years for misleading customers into paying more for residential mortgage-backed bonds in the years after the financial crisis, the New York Times DealBook reported yesterday. The former trader, Edwin Chin, was fired from Goldman in 2012, when he was running its residential mortgage-backed securities trading desk and was its most active trader in the securities. In his work, Chin negotiated transactions for hedge funds and other clients that were buying and selling the bonds, sometimes out of Goldman’s own holdings. In a civil settlement announced yesterday, the Securities and Exchange Commission said that Chin had repeatedly abused his duty as an intermediary to increase Goldman’s trading profits, and thus, indirectly, his own compensation.
