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The prize for the DOJ in this settlement was an admission of wrongdoing. Theoretically this opens Goldman Sachs up to a lot more lawsuits and damages from priva
by jobu 11y ago
The prize for the DOJ in this settlement was an admission of wrongdoing. Theoretically this opens Goldman Sachs up to a lot more lawsuits and damages from private investors that were screwed when Goldman Sachs knowingly sold them mortgage bundles that were doomed to fail.
That said, I'm really surprised the stock hasn't taken more of a hit from this case.
- chishaku 11y ago> I'm really surprised the stock hasn't taken more of a hit from this case. Already priced in long ago. Agreement in principle was made in January. http://www.goldmansachs.com/media-relations/press-releases/current/announcement-14-jan-2016.html http://www.goldmansachs.com/media-relations/press-releases/c... Reserves for these penalties were allocated last year.
- dotndip 11y agoYeah, and stock actually moved up in the short term when this was first announced since a settlement was reached. http://www.nytimes.com/2016/01/15/business/dealbook/goldman-to-pay-5-billion-to-settle-claims-of-faulty-mortgages.html http://www.nytimes.com/2016/01/15/business/dealbook/goldman-... TLDR: Other wall street bank settlements were much greater.
- yuhong 11y agoI wish it was common in more than just banking.
- Taniwha 11y agoyes let a million lawsuits rain!