Goldman To Cough Up $60M In Mass. Subprime Deal

Law360, New York (May 11, 2009, 12:00 AM EDT) -- Goldman Sachs & Co. has reached a $60 million settlement with the Massachusetts attorney general to resolve potential claims stemming from an investigation into the collapsed subprime mortgage industry.

The settlement — thought to be the first of its kind with a major U.S. investment bank — was announced Monday by Attorney General Martha Coakley's office, which launched an investigation of Wall Street's subprime lending practices in December 2007.

Under the deal, Goldman will offer $50 million in loan restructuring to Massachusetts subprime borrowers, replacing problem...
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