Subprime Lending

Massachusetts AG Nails Goldman for $60 Million 

Goldman Sachs [stock GS][/stock] is paying the commonwealth of Massachusetts $10m as a result of an agreement between the firm and the state’s Attorney General regarding subprime loan activity and related securitization activity. Goldman is also pledging an addition $50m for loan refinancing to make the subprime mortgages more affordable to the borrowers. No money is set aside, as of yet, for any third-party investors who may feel the ouch from today’s decision.