Goldman Sachs settle for $5b over bunk mortgages sold in run-up to 2008 crisis
Global investment banking firm Goldman Sachs has agreed to pay a more than $5 billion settlement over its deceptive sales of mortgage-backed securities prior to the 2008 financial crisis.
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.
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.
While the settlement does not include criminal penalties, it also does not end the chance that Goldman will not face criminal charges at a later date, nor does it allow individuals reprieve from any potential criminal or civil liability, the DOJ added.
this is the epitome of what is so wrong in our world..
fined 6 billion for ripping off many many more billions from taxpayers in the us..
and here is the kicker..
“While the settlement does not include criminal penalties”
nobody goes to jail..and..the fine will subsidized by taxpayers!