A $5 billion settlement with the government agreed to earlier this year by The Goldman Sachs Group Inc. has been finalized. At issue are mortgage securitizations.
In
January, the New York-based investment banker disclosed an agreement in principle to resolve actual and potential civil claims related to an ongoing investigation.
Goldman Sachs allegedly misled investors about the quality of RMBS of loans being securitized. It didn’t pass on the knowledge that the loans were likely to default.
The alleged actions occurred between 2005 and 2007, according to the Department of Justice.
The New York-based investment banker agreed to pay $5.06 billion for its role in the marketing, packaging and issuance of residential mortgage-backed securities, the Justice Department news release Monday said.
The settlement includes $2.385 billion in civil penalties; $1.8 billion in relief for distressed borrowers and communities, loan forgiveness and affordable housing financing; and $0.875 billion to resolve claims by other federal entities and state claims — the same as originally disclosed in January.
The settlement was part of the Financial Fraud Enforcement Task Force’s RMBS Working Group.
