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Goldman Sachs reaches deal to pay $2.38 billion fine over mortgage securities

Goldman Sachs Group Inc. said Thursday it will pay a $2.385 billion civil penalty, make $875 million in cash payments, and provide $1.8 billion in consumer relief in relation to its mortgage securities dealings before the Great Recession. The agreement will result in fourth-quarter earnings being cut by $1.5 billion, the investment bank said. The consumer relief will be in the form of principal forgiveness for “underwater” homeowners and distressed borrowers, financing for construction, rehabilitation for affordable housing, and others. The agreement resolves “actual and potential” civil claims by the U.S. Department of Justice, the New York and Illinois attorneys general, the National Credit Union Administration, and the Federal Home Loan Banks of Chicago and Seattle, the bank said. It relates to Goldman’s securitization, underwriting, and sale of mortgage-backed securities from 2005 to 2007. Shares of Goldman Sachs were flat late trading Thursday after ending the regular session up 1.5%.

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Goldman Sachs reaches deal to pay $2.38 billion fine over mortgage securities Reviewed by on . Goldman Sachs Group Inc. said Thursday it will pay a $2.385 billion civil penalty, make $875 million in cash payments, and provide $1.8 billion in consumer reli Goldman Sachs Group Inc. said Thursday it will pay a $2.385 billion civil penalty, make $875 million in cash payments, and provide $1.8 billion in consumer reli Rating:
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