Massachusetts Settles with Goldman Over Subprime

Massachusetts has reached a multimillion dollar settlement with Goldman Sachs & Co. concerning its role in securitizing risky subprime mortgages that are now at the center of the nation's economic crisis. At deadline state Attorney General Martha Coakley was holding a press conference on the matter. The settlement includes a monetary payment and extensive relief to homeowners. The deal with Goldman is the result of the "Attorney General's ongoing investigation of the role of investment banks in the origination and securitization of subprime mortgage loans," according to a statement issued by the AG's office. Compared to its peers on Wall Street, Goldman was not that large of player in subprime securitization - a business dominated by Bear Stearns, Citigroup, Greenwich Capital, Lehman Brothers, and Merrill Lynch.