Goldman Sachs (CEO Lloyd Blankfien, pictured) will pay $5.1B to settle charges that it didn't properly screen MBS before selling them to investors as high-quality debt.
The investment banking giant will pay a $2.39B civil penalty, make $875M in cash payments, and provide $1.8B in consumer relief, according to a Justice Department statement.
Today’s resolution is the latest in a string of multibillion-dollar settlements in the US’s push to hold Wall Street accountable for packaging and selling MBS that spurred the 2008 crisis, Bloomberg reports.
Since 2013, the Justice Department has settled with JPMorgan Chase ($13B), Citigroup ($7B), BofA ($17B) and Morgan Stanley ($2.6B, which cut profits by 46%)—and other banks. Royal Bank of Scotland Group Plc and Deutsche Bank AG are still under investigation. [Bloomberg]
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