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Goldman Sachs to pay $272 million in toxic mortgage lawsuit

Just more evidence that Wall Street firms will stop at nothing to make a buck. What gall they must have to defraud an electrical worker’s pension fund!

Justice League

Goldman Sachs (GS) will pay $272 million to settle a lawsuit over losses suffered due to alleged misrepresentations of the quality of mortgage loans that backed crisis-era mortgage-backed securities.

According to a Reuters report, the settlement is with investors led by NECA-IBEW Health & Welfare Fund, an electrical workers’ pension fund in Decatur, Illinois.

The lawsuit stretches back to 2008, when NECA-IBEW sued Goldman Sachs, arguing that Goldman made false statements or omitted key information regarding the nature of the mortgages it sold into 17 different trusts during 2007.

From the Reuters report:

NECA-IBEW accused Goldman of misleading investors about the underwriting of home loans backing the securities, including the quality of appraisals and whether borrowers were capable of repaying their loans.

The fund said the securities’ prices collapsed during and after the financial crisis, while their credit ratings fell to low, “triple-C” junk grades…

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