The American investment bank Goldman Sachs said Friday it would buy for $ 3.15 billion of financial products backed by subprime mortgage (“subprime”) to to settle lawsuits.
These financial products were sold between 2005 and 2007 refinancing mortgage companies Freddie Mac and Fannie Mae, which had subsequently been washed away by the financial crisis and placed under the guardianship of the state.
The transaction is part of a mutual agreement with the FHFA, the regulator that oversees Fannie and Freddie.
In addition to Goldman Sachs, the FHFA had launched lawsuits against a number of banks have transferred the two organizations to toxic mortgage refinance real estate financial products based on credit granted to insolvent borrowers (the famous “subprime”).
The banks were accused of lying at the time about the risks posed by such financial products, and have since settled most disputes amicably.
Goldman Sachs states that the agreement Friday rule “all complaints filed by the FHFA as at the federal level to the state level” regarding financial products linked to mortgages sold to Fannie and Freddie.
The bank ensures that most of the cost of the agreement is covered by the reserves it has set aside to cover its legal disputes.
subprime and practices of American banks in the years preceding the crisis continue their be very expensive, because of the multitude of complaints and procedures of various origins against them.
A friendly a historic amount of nearly $ 17 billion agreement has yet been announced Thursday between Bank of America and the Department of Justice, six American states and several regulators.
Goldman Sachs had itself resulted prosecution stock gendarme (SEC) in exchange for a payment of $ 550 million in 2010, but one of its brokers, the French Fabrice Tourre, was convicted of securities fraud after a trial in New York last year.
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