ARLINGTON, Va.—Goldman Sachs Group will pay some $5.06 billion in fines and redress to resolve actual and potential civil claims by NCUA, the Justice Department, the New York and Illinois Attorneys General, and the Chicago and Seattle Federal Home Loan Banks over faulty residential mortgage-backed securities.
Specifically, the firm said it has reached an agreement “in principle” that includes paying a $2.385 billion civil money penalty, $875 million in cash payments and $1.8 billion in consumer relief. The details released so far do not specify how the $875 million in cash payments would be distributed.
NAFCU EVP of Government Affairs and General Counsel Carrie Hunt thanked NCUA for pursuing claims against Goldman Sachs Group.
“NAFCU appreciates the NCUA’s ongoing actions in seeking recoveries relative to faulty mortgage-backed securities,” said Hunt. “We hope the monies ultimately recouped are significant enough to have a positive impact on consumers and our members.”