Goldman Sachs to Pay $5 Billion Over Role in Global Economic Crisis © AP Photo/ Richard Drew
03:46 13.04.2016(updated 09:45 13.04.2016) Get short URL
Goldman Sachs will pay over $5 billion to settle charges that the company deliberately misguiding mortgage bond investors in the lead-up to a housing bubble that preceded the 2008 global economic crisis.
The agreement was made public at news conference on Monday. The deal resolves federal and state claims over Goldman’s actions between 2005-2007, including its packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities.
According to the Justice Department, Goldman’s activities inflicted billions of dollars in losses to investors, including financial entities that had federal insurance.
The settlement includes over $2.3 billion in civil penalties and $1.8 billion in relief to homeowners and borrowers, as well as $875 million to resolve other federal and state claims.
Announcing the deal, New York Attorney General Eric Schneiderman said it would prevent thousands of families from losing their homes, help to fund new housing projects, and support land banks and code enforcement efforts.
Schneiderman cliamed that the deal is a “major step in the fight for justice for the families and communities that were devastated when a combination of reckless deregulation and abusive practices by a relatively small number of financial firms brought the American economy to its knees in 2008.”
Advocacy groups slammed the settlement, saying it doesn’t take into consideration punishing the individuals involved in the activities that led to the crisis, who must be prosecuted.
“Banks don’t commit crimes, bankers do. And until bankers are punished individually and significantly, the crime wave on Wall Street is going to continue,” Dennis Kelleher, CEO of Better Markets told Hurriyet Daily News.
Moreover, under the deal, compensations that Goldman Sachs pays are tax-deductible, meaning the company will be forced to outlay much less cash less than initially announced.
Previously such banks as Bank of America, Citigroup and JPMorgan Chase & Co have settled similar claims.
My Comment: Goldman Sachs pays a pittance for causing trillions of dollars in losses. Punish the Banksters heavily…no more tiny slaps. Banksters causing a GLOBAL ECONOMIC COLLAPSE THROWING MILLIONS OF PEOPLE INTO FOOD RIOTS & STARVATION SHOULD NOT PAY A PITTANCE FINE-THEY SHOULD BE JAILED!!