Goldman Sachs will pay 5,100 million to close the case of subprime mortgages

Investment bank Goldman Sachs announced today that it has agreed to pay about 5,100 million to end investigations by the US authorities on their sales of products backed by subprime mortgages between 2005 and 2007.

In a statement, the company said it has reached an “agreement in principle” with the authorities, whereby several open regarding their practices in the years before the financial crisis cases would be closed.

Goldman Sachs will pay for it a fine of 2.385 million dollars, 875 million paid in cash and will provide assistance to 1,800 million dollars to affected consumers in the form of debt forgiveness and refinancing.

Within this latter amount investments in construction and rehabilitation programs for affordable housing and preventing evictions, among other aids are also included.

The bank announced that the agreement will have a negative impact of $ 1,500 million after-tax profits in the last quarter of 2015, it plans to present this month.

Other giants of the financial sector had reached with the United States Government such arrangements in recent years.

Bank of America, for example, agreed in 2014 to pay a historic fine of 16,500 million dollars for his role in the marketing and sale of mortgage-backed garbage pre-crisis assets.

Meanwhile, Citigroup agreed to pay 7.000 billion and JP Morgan agreed to pay 13,000 million, also because of its bad mortgage practices.

In the case of Goldman Sachs, the pact will resolve records driven by the Justice Department, the attorneys general of the states of New York and Illinois and several organizations regarding their management of these products between 2005 and 2007.

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