Goldman Sachs announced that its latest mortgage practices settlement will cost it $1.5 Billion, or about as much as one (1) quarter's worth of revenue after taxes.
That's a good deal, even if the task force of legal officers and their departments who are once again on the other side of Goldman's latest mortgages settlement, have offered only "no comment." E.g., Matthew Goldstein, "Dealbook Online / Goldman to Pay Up to $5 Billion to Settle Claims of Faulty Mortgages" (New York Times Online, posted on January 14, 2016); Ken Sweet Associated Press Copyrighted Report published in Washington Post Online, "Business / Goldman Sachs to Pay $5 Billion in Mortgage Settlement" (Online January 14, 2016).
Banks settle their mortgage practices exposure for about 2% of the money they take in from marketing, selling, and servicing their mortgages portfolio. That would put Goldman's take was about $75 Billion for the period in question, which is 2005 to 2007.
We have been posting articles on Goldman's great deal on Insurance Claims and Bad Faith Law blog.
Please Read The Disclaimer. ©2016 by Dennis J. Wall, author of "Lender Force-Placed Insurance Practices" (American Bar Association 2015). All rights reserved.
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