Goldman Sachs will pay more than $5 billion for causing 2008 crisis deal

Us Bank Goldman Sachs agreed to pay $5.06 billion as part of the settlement of the case of transactions with mortgage bonds that led to the financial crisis of 2008, reported the U.S. Department of justice on Monday. A portion of this amount — $1.8 billion — Goldman Sachs will be directed to support the affected borrowers, the report says.

The settlement agreement leaves the U.S. authorities the right to initiate criminal proceedings against Goldman Sachs and not release the Bank from potential criminal or administrative liability, the statement of the Ministry. As part of the settlement the Bank agreed to cooperate fully with authorities in any investigation on the events covered by the agreement.

Under the agreement, Goldman Sachs agreed to plead guilty in the fact that he misled potential investors in mortgage-backed securities between 2005 and 2007. As noted by the U.S. justice Department, as a result, investors suffered billions in losses.

Agreement with Goldman Sachs confirmed the determination of the office of the US Department of justice on administrative cases in bringing to justice “those whose illegal actions led to the financial crisis of 2008,” said Deputy assistant attorney General and head of the administrative unit of the U.S. Department of justice Benjamin Mizer.

Previous agreements on transactions with mortgage securities that sparked the 2008 crisis, concluded by JPMorgan Chase & Co., Bank of America and Citigroup.