Report: Goldman FHFA settlement could near $1B or more


Goldman Sachs (NYSE:GS) has been in talks with the FHFA about resolving a lawsuit over crisis-era mortgages that could see the bank paying in the area of $800M-$1.25B, reports the WSJ. It would be the largest legal payout in Goldman's long history. The story quickly adds that no settlement is imminent.

The FHFA sued 18 banks in 2011 over failing to properly disclose risks in MBS sold to Fannie Mae and Freddie Mac. All but four of the companies have settled, and the trial is scheduled to being in late September.

Goldman, and others, have asked a federal judge to toss out some of the FHFA claims thanks to a recent Supreme Court ruling which may mean the lawsuits were filed too late.

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Comments (6)
  • nap.jerry
    , contributor
    Comments (74) | Send Message
     
    It's getting VERY tiresome seeing all of these "organizations" suing each other; yet, all the guilty ones (people) have gotten off scot free.
    26 Jul 2014, 03:55 PM Reply Like
  • aeroguy48
    , contributor
    Comments (854) | Send Message
     
    The guilty ones are the politicians who got off scott free all because 'they had good intentions'
    26 Jul 2014, 08:15 PM Reply Like
  • hksche2000
    , contributor
    Comments (1332) | Send Message
     
    There should be no statute of limitations for crimes against humanity, which is what these banks committed!

     

    Just think of how many people, (nobody talks about any more!), completely lost their livelihood (job, home, retirement etc) because of the reckless and insane behavior of these banks. Sure, some of these "customers" were gullible enough to deserve a share of the blame. But it was the financial institutions that, out of greed, did the damage that could have been avoided completely, if only banks had been following the "sane" rules they are applying today for credit to customers.
    26 Jul 2014, 06:31 PM Reply Like
  • al roman
    , contributor
    Comments (15898) | Send Message
     
    800-1.25B if some of the claims were filed to late it's the lower end.
    8 years is the best time frame for acuity after that risking the frying pan.
    Make room for the next generation.
    27 Jul 2014, 08:27 AM Reply Like
  • deercreekvols
    , contributor
    Comments (9141) | Send Message
     
    Think of the positive PR Goldman Sachs could have had if they had just ponied up the money without delay.
    $1B, or so, is nothing to an outfit like GS. Pay the money and move on to the next scheme.
    Nobody goes to jail. Nobody held accountable. It's the way of Wall Street.
    27 Jul 2014, 09:52 AM Reply Like
  • moseharper
    , contributor
    Comments (511) | Send Message
     
    The crime in all this is called the Community Reinvestment Act, foisted upon banks many years ago by Congress. "You must make loans to those who live in certain areas, of certain creeds and colors, even though they do not qualify; otherwise you are not serving your community." Pure BS and one of the early steps to socialism. But this one bit them in the rear. Unfortunately, the entire nation suffered to satisfy some goofs in congress.
    27 Jul 2014, 02:17 PM Reply Like
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