Goldman Sachs agrees to pay $3.15B in FHFA suit
Settlement will resolve RMBS claims
The Goldman Sachs Group will pay $3.15B to buy back residential mortgage backed securities from the FHFA, resolving claims from 2005-2007, the company announced today.
In July, an article in the Wall Street Journal had estimated how much Goldman Sachs might pay as their trial date neared, ranging from $800 million to $1.25 billion, far below the actual settlement.The defendants had hoped to have some of the FHFA claims tossed out because of a Supreme Court ruling which could mean the lawsuits were filed too late.
"We are pleased to have resolved these matters," Gregory Palm, executive vice president and general counsel of The Goldman Sachs Group, stated.
The FHFA has now settled with 15 of the 18 banks that it brought suit against following the financial crisis. The regulator's lawsuit against Goldman Sachs was scheduled to go to trial in September.