View Full Version : Goldman Sachs to Shift $5.1 Billion of Shekels in Mortgage Settlement

04-11-2016, 12:03 PM

Goldman Sachs to Pay $5.1 Billion in Mortgage Settlement
APRIL 11, 2016


Goldman Sachs has completed a $5.1 billion settlement with state and federal officials over the bank’s role in the subprime mortgage crisis.

Goldman is the last of the big American banks to reach a settlement with the national working group that was set up in 2012 to investigate how Wall Street exacerbated the mortgage bubble and ensuing financial crisis. Goldman said in January that it had put aside money to cover a $5 billion settlement.

The final bill for Goldman is less than the settlements of mortgage giants like JPMorgan Chase, which paid $13.3 billion, and Bank of America, which paid $16.6 billion, but more than the $3.2 billion paid by Goldman’s closest competitor, Morgan Stanley. A number of foreign banks are still under investigation.

As in previous settlements, the authorities did not name any particular bad actors at Goldman. The working group has been criticized for not punishing individual bankers.

But the legal documents released on Monday do provide some details on Goldman’s operations leading up to the financial crisis, and its awareness of significant problems in the mortgage market.