GOLDMAN SACHS AGREES 550-MILLION-DOLLAR SETTLEMENT
Baku, July 16 (AZERTAC). Embattled US bank Goldman Sachs will pay a record 550 million dollars to settle government fraud charges, the Securities and Exchange Commission said.
Facing allegations of defrauding investors, the storied investment bank admitted it had made a “mistake” and given “incomplete” information to clients.
The SEC had accused Goldman of allowing a prominent hedge fund -- Paulson & Co. Inc -- to put together a package of subprime mortgages that were sold to clients, but which Paulson was also betting against.
The firm had said it would “vigorously contest” the charges and “defend the firm and its reputation.”
But in a statement on Thursday it acknowledged marketing materials for the product “contained incomplete information.”
Goldman will pay 300 million dollars to the Treasury and 250 million to investors.
Among clients of Goldman`s controversial product were German commercial bank IKB and Britain`s RBS.
Goldman claimed that it lost 90 million dollars from its own investment in the security.
Goldman reportedly made billions of dollars by betting against the housing market in the years before its collapse.
Goldman was among the top gainers in US stocks on Thursday, its shares rising 4.43 percent to 145.22 dollars by the close of trade and a further five percent in after-hours trade.
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