This is way important....Goldman settles with homeowners to settle an INQUIRY into their role in subprime lending..not necessarily loans they made but by lenders they funded...why isn't this happening in other states?..is this a precedent of whats to come?..I certainly hope so...they didnt even let it get further than an inquiry..this is something..
http://www.huffingtonpost.com/2009/05/12/goldman-sachs-settles-sub_n_201929.htmlBOSTON (AP) -- Investment banker Goldman Sachs has agreed to pay a $10 million fee and let some 714 Massachusetts homeowners rework their mortgages in a settlement reached as part of a state investigation into subprime lending.
Attorney General Martha Coakley said the rewritten mortgages could save about $50 million for residents across the state, the bulk of them living in Boston, Brockton, Lawrence, Springfield and Worcester.
Goldman will reduce the principal on first mortgages by up to 35 percent, and work with its affiliate, Litton Loan Servicing LP, on refinancing terms.
Borrowers will be contacted by their lender or should contact the person to whom they make their mortgage payment, Coakley said.
While Goldman did not admit to any legal wrongdoing, it provided capital for mortgage lenders who provided the high-risk loans to marginal borrowers. Goldman, in turn, packaged the loans into stock market commodities through a process known as "securitization."
more at link