Goldman Sachs's press release showed that it figures on:
- $2.39 Billion in civil penalties;
- $875 Million in "cash payments;" and
- $1.8 Billion in "soft money" mortgage forgiveness and refinancing breaks.
These things do not add up to $5 Billion or anywhere close, contrary to published reports of Goldman's press release. The task force of State and Federal regulators that Goldman says it settled with, have no comment. See, e.g., Matthew Goldstein, "Dealbook Online / Goldman to Pay Up to $5 Billion to Settle Claims of Faulty Mortgages" (New York Times Online, posted on January 14, 2016); Ken Sweet Associated Press Copyrighted Report published in Washington Post Online, "Business / Goldman Sachs to Pay $5 Billion in Mortgage Settlement" (Online January 14, 2016).
Take a look at the "soft money" category. Credits for mortgage forgiveness and refinancing breaks never involve the banks paying money in any case. Further, credits in similar amounts frequently appear in most of the banks' settlements of their mortgage practices. The banks demanded and received credits worth lots of money, they said, for previous mortgage relief.
There is no deal we can put objective values on. Not yet. It is not written.
However, I think we already know the value that Goldman puts on this settlement.
To be continued ….
Please Read The Disclaimer. ©2016 by Dennis J. Wall, author of "Lender Force-Placed Insurance Practices" (American Bar Association 2015). All rights reserved.
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