The deal, first disclosed by Goldman Sachs in January, is in response to investigations by the US Justice Department, the New York and Illinois attorneys general, state regulators, and others against the firm for the bank’s packaging, securitization, underwriting, and sale of residential mortgage-backed securities from 2005 to 2007, according to a DOJ statement.
No year is complete until Goldman Sachs pays a fine to make a massive investigation go away. https://t.co/M7bbkQ3frb
— Matt Taibbi (@mtaibbi) April 11, 2016
.@BetterMarkets notes that taxpayers will now be forced to subsidize Goldman's DoJ settlement pic.twitter.com/6QXeVQtDaR
— David Sirota (@davidsirota) April 11, 2016
The deal will require Goldman to pay $2.385 billion in civil penalties, $875 million to settle other federal and state claims, and $1.8 billion in "other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing," the DOJ said.
"This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," said Acting Associate Attorney General Stuart Delery.
https://www.rt.com/usa/339247-goldman-sachs-settlement-mortgages/
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