Goldman Sachs Group Inc Settles With FHFA

Goldman Sachs Group Inc (NYSE:GS) agreed to settle with the Federal Housing Finance Agency (FHFA) on claims regarding private-label mortgage-backed securities the investment bank had sold to Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) between 2005 and 2007. The FHFA is the conservator of the two housing mortgage companies.

Of the amount of $3.2 billion, Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), would receive $1 billion, while Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) would be paid $2.15 billion.

Dubious underlying securities

Goldman Sachs...