NEW YORK (Legal Newsline) – New York Attorney General Eric T. Schneiderman announced that the state will receive $670 million as part of Goldman Sach’s $5 billion federal settlement related to its alleged deceptive practices leading up to the 2008 financial crisis.
A total of $480 million will be given as creditable consumer relief and $190 million as cash allocated to the state. The resolution also mandates that Goldman Sachs deliver community-level relief to New York consumers, such as resources for an expansion of the state’s Mortgage Assistance Program.
“Since 2012, my number-one priority has been getting New Yorkers the resources they need to rebuild,” Schneiderman said. “These dollars will immediately go to work funding proven programs and services to help New Yorkers keep their homes and rebuild their communities. We’ve witnessed the incredible impact these programs and services can have in helping communities recover from the financial crisis. This settlement, like those before it, ensures that these critical programs–such as mortgage assistance, principal forgiveness, and code enforcement–will continue to get funded well into the future, and will be paid for by the institutions responsible for the financial crisis.”
The settlement also includes an agreed-upon statement of facts detailing how Goldman Sachs allegedly misled residential mortgage-backed securities investors about the quality of its mortgage loans.