Goldman Sachs to pay 5 Billion in mortgage settlement

[Lion Heart 15,041]

Goldman Sachs has completed a $5.1 billion settlement with state and federal officials over the bank’s role in the subprime mortgage crisis.

Goldman is the last of the big American banks to reach a settlement with the national working group that was set up in 2012 to investigate how Wall Street exacerbated the mortgage bubble and ensuing financial crisis. Goldman said in January that it had put aside money to cover a $5 billion settlement.

The final bill for Goldman is less than the settlements of mortgage giants like JPMorgan Chase, which paid $13.3 billion, and Bank of America, which paid $16.6 billion, but more than the $3.2 billion paid by Goldman’s closest competitor, Morgan Stanley. A number of foreign banks are still under investigation.

As in previous settlements, the authorities did not name any particular bad actors at Goldman. The working group has been criticized for not punishing individual bankers.

Full story:

 http://www.nytimes.com/2016/04/12/business/dealbook/goldman-sachs-to-pay-5-1-billion-in-mortgage-settlement.html?smid=tw-nytimesbusiness&smtyp=cur&_r=0

 

[Caesium 6,022]

I haven't heard of her. Is she famous abroad? 

[Seeka 12,372]

Surprised @Economy didn't post this.

[Economy 52,844]

1 hour ago, Seeka said:

Surprised @Economy didn't post this.

Just read about it

 

they played a role, sounds fair...

 

but lets not forget the Government as well as average jos had a hand in it also. Everyone was at fault, the banks were maybe 1/3 of it

[Lion Heart 15,041]

Huh.. I was expecting this thread to get more replies. 

[LebaneseDude 6,146]

2 hours ago, Lion Heart said:

Huh.. I was expecting this thread to get more replies. 

People prefer to think about the issue abstractly rather than understand the details  

[Economy 52,844]

11 hours ago, LebaneseDude said:

People prefer to think about the issue abstractly rather than understand the details  

This!!!

 

what about the low interest rates from the Federal Reserve that were left too low for the state of the economy? What about the fane me and fredimac insurance from Government to encourage lending to people of modest means... Did the Government not set up a system to encourage bad lending practices?

 

what about the average person? Did many people not make stupid decisions with their finances that left them stretched? Is the bank the only responsible one for your decisions on how much loans you take out, loans you cant afford?

 

So i agree with u, theres many angles to the cause of 2008 crisis. Ppl blame the banks, but they were only 1 factor out of many.

[LebaneseDude 6,146]

1 hour ago, Economy said:

This!!!

As they say, it takes two to tango. Everyone has a part to blame in this.

[MJHolland 12,725]

That's a really, really small settlement for a big banks lol.

The big banks already paid back the TARP funds and then some. Many factors caused the collapse. Where is the accountability for the Government's role? How about the people that actually took the bad mortgages?

[Economy 52,844]

1 hour ago, MJHolland said:

That's a really, really small settlement for a big banks lol.

The big banks already paid back the TARP funds and then some. Many factors caused the collapse. Where is the accountability for the Government's role? How about the people that actually took the bad mortgages?

Exactly what i was just discussing with the other user

 

The Government put in policies and and set rates that encouraged binge borrowing and bad practices

 

the average person also decided how to manage their finances. Just cuz a bank is willing to offer so much doesnt mean u gotta take it. The way i see it

 

Government: 33% at fault

Banks: 33% at fault

Everyone else who made dumb decisions: 33% at fault