Rogue US firm Goldman Sachs in $3.15-bn pact
24 Aug 2014 10:29 PM GMT
American multinational investment banking company Goldman Sachs has agreed to a settlement worth $1.2 billion to resolve claims that it misled US mortgage giants Fannie Mae and Freddie Mac about risky mortgage securities it sold them before the housing market collapsed in 2007.
The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, announced the settlement with the Wall Street powerhouse, which was founded in 1869 and is headquartered at 200 West Street in the Lower Manhattan area of New York City with additional offices in international financial centres.
Goldman Sachs sold the securities to the companies between 2005 and 2007. Under the settlement, Goldman is paying $3.15 billion to buy back the securities from Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency said that the settlement was worth $1.2 billion because of
the difference between what Goldman is paying and the current value of the securities.Â
The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, announced the settlement with the Wall Street powerhouse, which was founded in 1869 and is headquartered at 200 West Street in the Lower Manhattan area of New York City with additional offices in international financial centres.
Goldman Sachs sold the securities to the companies between 2005 and 2007. Under the settlement, Goldman is paying $3.15 billion to buy back the securities from Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency said that the settlement was worth $1.2 billion because of
the difference between what Goldman is paying and the current value of the securities.Â
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