Goldman, FHFA Close in on $1.1B Settlement: Report

Goldman Sachs is in the final stages of negotiating $1.1 billion settlement with the Federal Housing Finance Agency, according to a news report Friday.

The deal, which could be announced next week, would settle claims that the bank sold bad mortgage-backed securities to Fannie Mae and Freddie Mac in the lead up to the financial crisis, the Financial Times reported.

In 2010, Goldman paid $550 million to settle Securities and Exchange Commission charges that it misled investors about securities containing subprime mortgage debt.

The bank is also in the early stages of negotiations with the Justice Department related to its sale of mortgage securities, the report said.

News of the potential deal comes just one day after the Department of Justice announced a $16.5 billion settlement with Bank of America.

Bloomberg first reported on the settlement talks between Goldman and the FHFA last month.

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Comments (1)
bout time they brought these banksters to justice steven ruza attorney
Posted by steven r | Monday, August 25 2014 at 8:35AM ET
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