Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
Goldman to pay $3.15b to settle mortgage case
August 23, 2014 , 7 : 27 pm GST
SAVE THIS ARTICLE
Goldman Sachs said the agreement will resolve ‘all’ federal and state securities claims for mortgage-backed securities bought by Freddie and Fannie over the period. Photo: Bloomberg
Goldman Sachs will pay $3.15 billion to resolve claims it misled Fannie Mae and Freddie Mac on mortgage-linked securities it sold them before the United States housing bust, officials have said.
The Federal Housing Finance Agency (FHFA), the conservator for Fannie and Freddie, which were rescued by the government during the 2008 crisis, said that Goldman will repurchase the securities it sold to the two effectively government-backed mortgage giants between 2005 and 2007. Goldman said the agreement will resolve 'all' federal and state securities claims for mortgage-backed securities purchased by Freddie and Fannie over the period.
"We are pleased to resolve these matters," said Gregory Palm, executive vice-president of Goldman Sachs.
The FHFA, in its lawsuit against Goldman, accused the Wall Street bank of 'false statements' and 'misleading omissions' on the underlying securities.
The FHFA said the Goldman settlement was worth $1.2 billion. The $1.2 billion is the difference between the $3.15 billion paid by Goldman and the current value of the securities, a person familiar with the matter said.
Series of lawsuits
The FHFA said it has now reached 16 settlements following a series of lawsuits filed against financial giants in 2011 over the sale of mortgage-linked securities that cratered after the housing bust.
The agency said it is still pursuing lawsuits against HSBC, Nomura and Royal Bank of Scotland in comparable cases. The Goldman deal follows numerous other major US settlements with big banks following the 2008 financial crisis.
Rate this Article
Rates : 0, Average : 0
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter Image Text:
Back to Article
August 24 at 4 : 14 am
Goldman should call to international criminal court, he mess up international mortgage market and let middle class families to deserve, that middle class families cant buy home for seven year. This pig should be in criminal court, so other pigs will not manipulate the economy of the world.
Latest in this section
Omani banks post 12 per cent credit growth
alizz Islamic’s new Sharia-compliant products unveiled
Companies in Saudi Arabia yet to float Islamic bonds
Alibaba takes steps to fight fake products
Fukushima operator wins $2.5 billion Qatar utility contract
TOP RATED ARTICLES
More than 50 drivers join new taxi booking application in Oman
Oman National Transport Company signs pact with Dutch firm to purchase 40 low-floor buses
Oman: More than 150 companies set to participate in Sohar exhibition
Times News Service
Students caught smuggling drugs into UAE from Oman, Dubai court told
Times News Service
CNN-Times of Oman Exclusive: King Abdullah on Jordan’s economy, and IS threat
More in News
How spoilt is your child?
Rachel Carlyle/Daily Express
How to fall back to sleep in 20 minutes or less
Kim Jones/Daily Express
American travel, reportage photographer goes off his track in Oman
Whale sharks set for tagging to save species
Lewis Smith/The Independent
Sri Lanka restores blood-soaked railway to Tamil heartland
More in Features
Why Britain resigned as the global power?
Canada’s support to Israel is dangerous
The green superpower
Touching story of a child that our society rejected
Story of this birth won't top the news for long
More in Columns
Muscat Media Group.
Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial