US, Goldman Sachs reach $5B settlement over risky mortgages

WASHINGTON (AP) — The Justice Department on Monday announced a $5 billion settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis.
The deal resolves state and federal probes into the sale of shoddy mortgages before the housing bubble and subsequent economic meltdown.
It requires the bank to pay a $2.4 billion civil penalty and an additional $1.8 billion in relief to underwater homeowners and distressed borrowers, along with $875 mil