By Tom Schoenberg
Goldman Sachs Group Inc. will pay $5.1 billion to resolve US allegations that it failed to properly vet mortgage-backed securities before selling them to investors as high-quality debt.
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.
Related Reading:
Mortgage Market Shakedown: Popsicle Index Down, Goldman Sachs Up
Thumbing Down on Blankfein
An E-Mail to a Member of the Research Team at Goldman Sachs
Unanswered Questions About Andrew Cuomo
In Settlement’s Fine Print, Goldman May Save $1 Billion