Goldman didn't disclose mortgage bond risks to investors

April 11, 2016 7:02 PM

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Goldman Sachs (GS) repeatedly identified risk signs in pools of mortgage-backed securities during the lead-up to the U.S. financial crisis, but didn't disclose the issues to investors, according to filings in a newly-finalized $5.06 billion settlement announced Monday.

The glimpse of the New York-based banking and investment giant's internal review process came as Goldman Sachs acknowledged it marketed and sold tens of billions of dollars in residential mortgage-backed securities without weeding out questionable loans as investors had been promised.

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