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Goldman to Buy $3.15 Billion of Debt to End FHFA Claims

Goldman Sachs Group Inc. agreed to pay $3.15 billion to repurchase residential mortgage-backed securities to resolve federal claims tied to the sale of the bonds to Fannie Mae and Freddie Mac.

The buyback represents a premium of about $1.2 billion and makes the two U.S.-owned mortgage-finance companies whole on the securities, the Federal Housing Finance Agency, the firms’ government overseer, said yesterday in a statement. The cost of the settlement is “substantially covered” by Goldman Sachs’s reserves, the New York-based bank said in a separate statement.