Goldman Sachs Settles With SEC for $500 Million

Goldman Sachs makes peace with SEC for defrauding investors, but what about homeowners?


Goldman Sachs has settled with the SEC for $500 million for charges of defrauding investors in a sale of securities tied to subprime mortgages. On Thursday, Goldman shares jumped almost 8 percent in after-hours trading on the announcement, as many predicted the company would be forced to pay $1 billion to settle the case. $550 million is the largest penalty for a Wall Street company to date. Regulators said $250 million would be returned to affected investors, and $300 million would be paid to the U.S. Treasury. Goldman Sachs profits from paying a smaller fine than anticipated, and investors get some of their money back. That's all well and good, but what about the homeowners? That's right, they get foreclosures.

Read more at CNNMoney.

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