Goldman Sachs pays near $1.2 billion to settle FHFA financial crisis lawsuit

Goldman Sachs will also buy back mortgage securities for $3.15 billion

Goldman Sachs is next in line for a mortgage crisis-related settlement with the Federal Housing Finance Agency (FHFA), and according to the agency, the price tag is 10 digits.

On August 22, the FHFA announced that Goldman Sachs will pay about $1.2 billion to settle claims that the firm did not adequately disclose the risks when selling mortgage bonds in the lead-up to the 2008 financial crisis. The two parties also announced that Goldman would buy back mortgage securities it had sold to Fannie Mae and Freddie Mac for $3.15 billion.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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