Goldman Sachs Agrees to $5.1 Billion Settlement
Investors will have to settle for less. The agreement, pending approval from the Justice Department, includes a $2.4 billion civil penalty, $875 million in cash and $1.8 billion in “consumer relief,” which will include loan forgiveness for underwater homeowners and support for affordable housing. The bank was accused of selling mortgage securities that were likely to fail to unwitting customers in the lead-up to the financial crisis. This settlement will reportedly reduce Goldman’s Q4 profits by $1.5 billion — though its quarterly report won’t drop until Jan. 20.