Goldman Sachs Group Inc (GS) Agrees To Settle Mortgage Lawsuit

[think]

Goldman Sachs Group Inc (GS) Agrees To Settle Mortgage Lawsuit: Report

The bank will soon be free of the litigation costs that have surfaced since the financial crisis

By: TROY KUHN
Published: Aug 2, 2015 at 9:12 am EST

Goldman Sachs Group Inc (NYSE:GS) has reportedly agreed to settle a case brought forward by investors. According to Bloomberg, the firm has agreed to pay $270 million towards the settlement. The lawsuit relates to investors’ concerns that the bank allegedly mislead them over the dealings of mortgage-backed securities.

The lawsuit is led by the pension funds claiming that Goldman Sachs misrepresented risks associated with mortgage securities. They claim the investors were presented misleading information about the underlying credit quality and appraisals of home loans. Most of these claims date back to the sales made before the housing slump and the financial crisis in 2007-08.

Many financial institutions have been sued on issues stemming from the financial crisis in 2008-09. Investors have brought forward many class actions against banks, reminding them of the mistakes they made. They have also unfolded billions of dollars of penalties. Goldman Sachs, along with other banks, has been involved in such litigation issues for quite some time and it has affected its overall earnings. The bank, along with UBS and Citigroup, got an approval from the court yesterday over a settlement of the mortgage securities issue.

This $270 million settlement could be the last of a string of suits that Goldman Sachs had to deal with. In the recent earnings of the second quarter of fiscal year 2015, the bank witnessed a fall in earnings due to a large hit by the litigation charge. The firm posted earnings per share (EPS) of $1.98, a drop of more than 50% from a year earlier. The majority of the banks in this earnings season reported positive earnings, declaring a drop in costs...

Full article:
http://www.bidnessetc.com/49152-goldman-sachs-group-inc-gs-agrees-to-settle-mortgage-lawsuit-report/

[Wellstone ruled]

1. And we now know how Holders leaving the DOJ

works for Wall Streets advantage. Got your back Mr. Blankfind,we at Coving Burley will be summit our bill later today.