$41M settlement for Goldman Sachs in ‘risky’ securities suit
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Goldman Sachs will pay a $41 million settlement for marketing misconduct and selling risky residential mortgage-backed securities before the 2008 economic collapse.
The agreement stems from an investigation into the investment bank’s failure to disclose the true risk of RMBS investments, according to a statement from the Illinois Attorney General’s office.
The settlement includes $25 million in relief for Illinois pension systems and $16 million in consumer relief, which an independent monitor will be appointed to oversee, according to prosecutors.
The bank will pay nearly $23.8 million to the Teachers Retirement System of the State of Illinois, $472,500 to the State Universities Retirement System of Illinois, and $737,500 to the Illinois State Board of Investment, which oversees the State Employees’ Retirement System, General Assembly Retirement System and Judges’ Retirement System, according to the statement.
The agreement is part of a $5 billion national settlement forged by the U.S. Department of Justice, state attorneys general from New York and California, and other federal agencies.