Goldman Sachs agrees record $550m fine. Disgraceful!!!!

nuffingman

US bank Goldman Sachs has agreed to pay $550m (£356m) to settle civil fraud charges of misleading investors. The charges concerned Goldman's marketing of mortgage investments as the US housing market faltered. US finance watchdog the Securities and Exchange Commission said it was the biggest fine for a bank in its history.

The UK's Royal Bank of Scotland, which is now 84% owned by the UK taxpayer and lost about $840m in investments, will receive $100m compensation. German bank IKB Deutsche Industriebank will receive $150m, with the remaining $300m going to the US Treasury.

Terms of the settlement are subject to approval by a federal judge. The SEC said Goldman had acknowledged that marketing material contained "incomplete information".

In a statement, Goldman did not admit legal wrongdoing but said the move was "the right outcome for our firm, our shareholders and our clients".

Despite the record fine, Goldman shares rose by 4.5%, reflecting the fact that many analysts felt the firm had got off lightly.

"They pay $550 million and they get an $800 million pop in their stock price... they got off easy," said Kevin Caron at Stifel, Nicolaus & Co.

Goldman made a profit of $3.5bn in the first three months of this year.

http://www.bbc.co.uk/news/business-10656699

Hopefully the federal judge won't approve this. RBS in the UK has lost $740 million in this and the US treasury are pocketing $300 million!!!!! The US government have been attacking BP recently to ensure compensation is paid. Now it's their turn to ensure all investors from this shoddy deal are paid back in full.

theserialthrilla

thats like me giving you 50 pence.


my wife works for Deutsche in london.i think they did not do as bad as some of the other banks.but even so.