SEC fines, bans former Goldman Sachs head RMBS trader for fraud

But not one bankster execs are criminally charged…

The former head trader of residential mortgage-backed securities for Goldman Sachsrepeatedly lied to the firm’s clients and overcharged mortgage bond buyers, generating millions of dollars in extra revenue for both Goldman Sachs and himself in the process, the Securities and Exchange Commission stated Tuesday.

According to the SEC, Edwin Chin, who served as Goldman Sachs’ head RMBS trader from 2010 through 2012, agreed to settle charges brought by the SEC that he lied to clients about the prices of RMBS deals, frequently misrepresenting not only the prices that Goldman Sachs paid for the mortgage bonds, but whether the bonds were sold out of Goldman Sachs’ inventory or not.

As part of the settlement, Chin will pay a fine of $400,000 and is barred from working in the securities industry for at least two years, the SEC said.

According to a statement from Goldman Sachs, the firm fired Chin in 2012 after the allegations of his misconduct first surfaced.

Read on.

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