Goldman Sachs Reportedly Agrees To Pay $270 Mln To Settle MBS Lawsuit
August 2, 2015 at 00:40
NEW YORK CITY (dpa-AFX) - Goldman Sachs Group Inc. (GS) has agreed to pay around $270 million to settle a lawsuit by investors who claimed the bank misled them about the safety of billions of dollars worth of residential mortgage-backed securities, Bloomberg reported citing people familiar with the matter.
The agreement hasn't been signed yet and is expected to be disclosed as soon as Monday, the report said.
Pension funds led by NECA-IBEW Health & Welfare Fund of Illinois reportedly said the bank gave investors misleading information about the appraisals and credit quality of home loans underlying the securities. The prices soon collapsed amid the 2008 financial crisis, the investors said.
In mid-July, Goldman Sachs said that during the second-quarter, it recorded $1.45 billion in net provisions for mortgage-related litigation and regulatory matter.
Copyright RTT News/dpa-AFX
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