And the securities in question weren't all obviously problematic.
The securities in question originated in and were rated and sold in Europe, the S.E.C. said.
Minutes later, he e-mailed his UBS broker to sell the securities in his account.
The borrower retains all the upside and downside of the securities in question.
Goldman wanted to keep the initial insurance payouts and the securities in order to profit from any future rebound.
They "could be greater, could be less," he said, "depending on the performance of the securities in which you invested".
Investors have sold the securities in recent days, pushing yields to levels not seen since the end of January.
The securities in between the equity and the senior securities are known as mezzanine.The bottom tiers of these CDOs have been called "toxic waste".
The two mortgage giants acquired the securities in the years before the housing market collapsed as they expanded rapidly and looked for new investments that were seemingly safe.
Deutsche Bank underreported the delinquency rates among loans when it created the securities in 2006, Finra contends, and then sold them to investors.
To prop up the housing market, the Fed completed buying $1.25 trillion of the securities in March, and then abandoned the practice.
