Goldman Sachs to pay $5B for mortgage debacle

BLOOMBERG: Goldman Sachs will pay $5.1 billion to settle a lawsuit that alleges the investment baking giant mislead investors just before the 2008 financial crisis and housing bubble.

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New York-based Goldman Sachs, which announced details of the accord in January, will pay a $2.39 billion civil penalty, make $875 million in cash payments and provide $1.8 billion in consumer relief, according to a Justice Department statement.

“This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart Delery.

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