Goldman agrees to pay $270m

Oliver Twist

Goldman Sachs has agreed to pay around $270m to settle a lawsuit by investors who claimed the bank misled them about the safety of billions of dollars worth of residential mortgage-backed securities, two people familiar with the case said.

Bloomberg News reports that the agreement hasn’t been signed yet and is expected to be disclosed as soon as Monday, the people said, asking not to be identified because the discussions are private.

Pension funds led by NECA-IBEW Health & Welfare Fund of Illinois said the bank gave investors misleading information about the appraisals and credit quality of home loans underlying the securities. The prices soon collapsed amid the 2008 financial crisis, the investors said.

To access the complete Bloomberg News article hit the link below:

Goldman Said to Agree to Pay $270 Million to Settle MBS Lawsuit

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