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.