Goldman Sachs to Pay Billions in Fines Related to the Financial Crisis, but Nobody’s Going to Jail

Not yet…

Justice League

Isn’t that the truth…And this another example of a financial firm that admits that they misled their own investors (just like Wells Fargo settlement last week that admitted that they misled their investors in mortgage sales) and yet no criminal charges in both cases.

Vice News:

In the complaints released Monday, the Department of Justice accused Goldman of misleading its own investors as to the strength of its mortgage-backed securities it was selling between 2005-2007. In 2006, for example, Goldman purchased a package of mortgages from a company called New Century Mortgage Corporation. Goldman’s own employees reviewed the loans and flagged them for “extremely aggressive underwriting” practices — meaning New Century’s employees were selling mortgages to buyers who couldn’t afford them, using shoddy documentations, and dubious financial models.
Internally, Goldman then took a close look at a third of those New Century Loans, to see if they were truly healthy…

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One thought on “Goldman Sachs to Pay Billions in Fines Related to the Financial Crisis, but Nobody’s Going to Jail

  1. I seriously doubt if we’ll ever see criminal prosecutions — too time-consuming & expensive. The DOJ knows how much it costs to go up against billionaires who have entire law firms @ their disposal & don’t care how much time or $$$ it takes to fight a case. The big banks can afford big fines / penalties, so it’s just a matter of working out a settlement, instead of the DOJ spending 7-10 years in court.

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