Massachusetts settles with Goldman Sachs
May 11, 2009
Goldman Sachs Group Inc. agreed to a $60 million settlement with the state of Massachusetts over its role in the subprime mortgage meltdown.
About $50 million of the settlement will go to homeowners struggling to recover from loans that went bad, The Boston Globe reported Monday. The rest of the settlement will go to the state, the newspaper said.
A spokeswoman for the attorney general’s office, Amie Breton, said the bulk of Goldman Sachs’s subprime mortgages were found in Boston, Brockton, Lawrence, Springfield and Worcester.
Breton said the settlement was “the first instance in the country where an investment bank has been held accountable for their role in subprime lending.”
Source: upi