Judge approves $550 million Goldman settlement

The agreement calls for $300 million to go to the government and $250 million to compensate two European banks

Published July 20, 2010 10:57PM (EDT)

A federal judge in New York City has approved the deal calling for Goldman Sachs & Co. to pay $550 million to settle civil fraud charges that the Wall Street giant misled buyers of mortgage-related investments.

Federal Judge Barbara Jones approved the settlement in Manhattan with a written order.

The settlement was announced last Thursday by the Securities and Exchange Commission. It calls for Goldman to pay a $535 million fine and $15 million in restitution of fees it collected.

The agreement calls for $300 million to go to the government and $250 million to compensate two European banks that lost money on their investments.

The penalty was the largest against a Wall Street firm in SEC history.


By Associated Press

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