Monday, October 23

Hall of Shame: Goldman Sachs Will Pay $5 Billion for Misleading Investors on Mortgage Assets

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

April 11, 2016

"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.

Mortgages

Source: www. npr.org

The Justice Department said 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.

The money Goldman will pay includes a $2.4 billion civil penalty, as well as $1.8 billion in relief to underwater homeowners, distressed borrowers and affected communities.

Goldman is the latest big bank to agree to a multibillion-dollar settlement with the government. Among the others are Bank of America, Citigroup and JPMorgan Chase.