Goldman Sachs to Pay $5 Billion in Damages Over Mortgage Bond Swindling

April 11th, 2016

Awake Goy

Goldman Sachs to Pay $5 Billion in Damages Over Mortgage Bond Swindling

April 11th, 2016

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 its 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.

A Goldman Sachs spokesman could not be immediately reached for comment.

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.

<!–