http://www.mprnews.org/story/2016/04/11/npr-goldman-sachs-will-pay-5-billion-for-misleading-investors-on-mortgage-assetsGoldman Sachs will pay $5 billion for misleading investors on mortgage assets
Goldman Sachs has become the latest big bank to agree to a multibillion-dollar settlement over the way it packaged and sold mortgage-backed securities in the heady days of the housing boom.
The Justice Department said today that Goldman had agreed to pay $5.06 billion over its conduct in the packaging and sale of residential mortgage-backed securities between 2005 and 2007.
Investors lost billions of dollars during the period by purchasing securities based on mortgages that were often much riskier than they were presented to be.
"Today's settlement is another example of the department's resolve to hold accountable those whose illegal conduct resulted in the financial crisis of 2008," said Benjamin C. Mizer, head of the Justice Department's Civil Division. He added:
