Monday, April 11, 2016

Goldman Sachs to pay $5 billion in U.S. Justice Dept mortgage bond pact

Goldman Sachs Group Inc has agreed to pay $5.06 billion to settle claims that it misled mortgage bond investors during the financial crisis, the U.S. Department of Justice said on Monday.

The settlement, which Goldman disclosed in January, stems from the firm's conduct in packaging, securitization, marketing and sale of residential mortgage-backed securities between 2007 and 2009, the Justice Department said.

Investors suffered billions of dollars in losses from the securities bought during the period, the department said.

The settlement comprises a $2.385 billion civil penalty and $1.8 billion in other relief, including funds for homeowners whose mortgages exceed the value of their property, as well as distressed borrowers. It also preserves the government's ability to bring criminal charges against Goldman and does not release any individuals from potential criminal or civil liability, the Justice Department said.

http://finance.yahoo.com/news/goldman-sachs-pay-5-billion-u-justice-dept-151910687--sector.html

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