Goldman Sachs To Pay $5 Billion To Settle Mortgage-Backed Securities Fraud Claims
Goldman Sachs is the latest of a string of financial institutions to reach a settlement with federal and state officials to resolve allegations of fraud in connection with the underwriting and sale of mortgage-backed securities. The firm recently announced that it has agreed to pay a total of $5 billion to resolve these allegations. The agreement will put an end to an ongoing investigation by the federal government’s Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force. And it is further evidence that although the financial crisis that resulted in so many consumers losing their jobs and homes may have ended, government officials continue to prosecute the reckless behavior of financial institutions whose greed was instrumental to the downfall of the economy. Whistleblower laws have been strengthened to forestall precisely the misconduct that led to the crash. Concerned citizens should not hesitate to seek advice from experienced attorneys on how to report financial fraud.