This week's settlement between the financial giant and the government is the latest in a string of billion-dollar settlements addressing Wall Street misconduct in the lead-up to the financial crisis of 2008. (The others were with JPMorgan Chase, Bank of America, Citibank, and Morgan Stanley, and the values ranged from approximately $3 billion to $16 billion.)
Like the other settlements, no individuals will be held accountable. As Public Citizen President Rob Weissman argues in response to the settlements, "Without criminal prosecution, there’s not even the illusion of accountability." Read his statement here.
The Washington Post reports on the settlement.
0 thoughts on “Goldman to pay $5 billion for selling bad mortgages”
What’s my share? What part of the settlement [2.385 billion]is structured so that it is deductible as a business expense and therefore ‘paid’ by the other taxpayers?
Mr. Bruckner’s reference explains tax credits that offset the 1.8 billion payments to distressed borrowers and communities nicely!
NY Times analysis suggests that Goldman will NOT pay $5Billion but will pay far less. See http://www.nytimes.com/2016/04/12/business/dealbook/goldman-sachs-to-pay-5-1-billion-in-mortgage-settlement.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=first-column-region®ion=top-news&WT.nav=top-news&_r=0