Goldman Sachs Said in Talks to Settle FHFA Mortgage Suit
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Goldman Sachs Group Inc. is in talks to settle a U.S. regulator’s claims the investment bank sold faulty mortgage-backed securities to Fannie Mae and Freddie Mac and will probably pay $800 million to $1.25 billion, according to a person briefed on the discussions.
The high end of the range would be on par with the agreement Morgan Stanley reached this year after being sued over a similar amount of mortgage bonds as New York-based Goldman Sachs. The final amount may change as an agreement is reached, said the person, who asked not to be identified because the settlement talks are private.