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BREAKING: Goldman Sachs To Shell Out $5B To End MBS Investigation
January 14, 2016
Wikipedia
Goldman Sachs (CEO Lloyd Blankfien pictured) says it will cough up $5.06B to end federal and state investigations of its underwriting and sale of mortgage-backed securities from 2005 to 2007.
The investment banking giant will pay $2.3B in civil penalties, $875M in cash payments, and $1.8B in consumer relief to settle all claims. The payout will lop off $1.5B from Goldman Sachs’ after-tax earnings, according to Law360.
Goldman Sachs is the latest in a line of big banks to settle with the Department of Justice. Since 2013, the agency has settled with JPMorgan Chase ($13B), Citigroup ($7B), BofA ($17B) and Morgan Stanley ($2.6B, which cut profits by 46%)—all from similar MBS investigations. [Law360]
