Goldman set to buy back $3.15m in mortgage bonds

Goldman Sachs is paying its largest bill yet to resolve a government lawsuit related to the financial crisis.

The New York Times reports that the bank said on Friday that it had agreed to buy back $3.15 billion in mortgage bonds from Fannie Mae and Freddie Mac to end a lawsuit filed in 2011 by the Federal Housing Finance Agency, the federal regulator that oversees the two mortgage companies.

The agency had accused Goldman of unloading low-quality mortgage bonds onto Fannie Mae and Freddie Mac in the run-up to the financial crisis. It estimates that Goldman is paying $1.2 billion more than the bonds are now worth.

The $1.2 billion figure carries a sting because it is double the $550 million payment that Goldman made in 2010 to settle the most prominent crisis-era case it has faced — the so-called Abacus case.

Hit the link below to access the complete New York Times article:

Goldman to Pay $3.15 Billion to Settle Mortgage Claims

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