Goldman Sachs agrees to $1.2bn settlement over mortgage bonds

Goldman Sachs agrees to $1.2bn settlement over mortgage bonds

‘Goldman Sachs has agreed to a settlement worth $1.2bn (£723m) to resolve a US regulator’s claims the bank sold Fannie Mae and Freddie Mac faulty mortgage bonds, the regulator announced on Friday.
Under the settlement with the Federal Housing Finance Agency, the conservator for the two government-controlled mortgage finance companies, Goldman Sachs said it agreed to pay $3.15bn (£1.9bn) to repurchase mortgage-backed securities from Fannie and Freddie.
The FHFA, which valued the settlement at $1.2bn, said the accord “effectively makes Fannie Mae and Freddie Mac whole on their investments in the securities at issue.”‘
Read more: Goldman Sachs agrees to $1.2bn settlement over mortgage bonds