New York, Jul 16: Fraud-hit Goldman Sachs is ready to pay 550 million dollars in fines to the Securities Exchange Commission (SEC) to settle the charges slapped against it.
“Goldman Sachs will pay USD 550 million and reform its business practices to settle SEC charges that Goldman misled investors in a sub-prime mortgage product just as the US housing market was starting to collapse," the market regulator, SEC, said in a statement on Thursday, Jul 15.
The statement informed that out of the 550 million dollars that will be paid by Goldman in the settlement, 250 million dollars will go to the investors, who were hit by the fraud, through a Fair Fund distribution while the rest of the 300 million dollars would be paid to the US Treasury.
"Half a billion dollars is the largest penalty ever assessed against a financial services firm in the history of the SEC.
“This settlement is a stark lesson to Wall Street firms that no product is too complex and no investor too sophisticated, to avoid a heavy price if a firm violates the fundamental principles of honest treatment and fair dealing," SEC"s Division of Enforcement Director Robert Khuzami said.
However, the settlement is still subject to approval by the US District Judge for the Southern District of New York.