The U.S. investment bank Goldman Sachs said that the volume of mortgage-backed securities in connection with the sale of which he presented to the court claims is $ 15.8 billion is almost 30 times more than last quarter. The bank itself has increased the amount of potential losses on litigation with a $ 2 billion to $ 2.6 billion
According to a Goldman Sachs notification of the results of its third quarter (Form 10-Q), filed with the Commission on Securities and Exchange Commission (SEC), the total value of mortgage-backed securities, in connection with the sale of which the bank has to respond to legal claims in the third quarter has increased dramatically. If at the end of June to the Goldman Sachs claims were filed in connection with the sale of mortgage-backed securities for a total cost of $ 485 million by the end of September, this amount has increased by more than 30 times - up to $ 15.8 billion Most of this sum - the claim of the Federal Agency for Housing Finance (FHFA), which in early September, said that on the eve of the collapse of the U.S. mortgage market Goldman Sachs sold mortgage-backed securities government mortgage agencies Fannie Mae and Freddie Mac totaling $ 11.1 billion and thus have incomplete information about the quality of these securities. As the deterioration in the U.S. housing market and rising defaults on home mortgages, these securities began to fall in price, and their customers - to incur losses. In addition to Goldman Sachs FHFA accused of selling low-quality mortgages Bank of America ($ 6 billion), Britain's Barclays ($ 5 billion) and 15 other financial institutions. Federal authorities believe that the total amount of "toxic" mortgage-backed securities sold to them by the federal mortgage agencies, is $ 196 billion Sam Goldman Sachs also believes that due to increased claims its legal costs could rise - though not as dramatically: the bank notified the SEC a possible increase in court costs from $ 2 billion to $ 2.6 billion
American observers have noted that the increase in legal costs related to the mortgage crisis still may be very out of place for American banks, which already began to suffer from new - European debt - the crisis (see "N-line" from 18/10/2011).
In late June, Bank of America has agreed to settle the claims of investors who suffered losses from purchases of mortgage bonds before the financial crisis. As part of the settlement of claims BofA paid $ 8.5 billion to investors in those affected investors - large funds BlackRock and PIMCO, insurer MetLife, Federal Reserve Bank of New York and others. Because of the benefits of such a large sum in the second quarter the bank recorded a loss of $ 8.8 billion
According to a Goldman Sachs notification of the results of its third quarter (Form 10-Q), filed with the Commission on Securities and Exchange Commission (SEC), the total value of mortgage-backed securities, in connection with the sale of which the bank has to respond to legal claims in the third quarter has increased dramatically. If at the end of June to the Goldman Sachs claims were filed in connection with the sale of mortgage-backed securities for a total cost of $ 485 million by the end of September, this amount has increased by more than 30 times - up to $ 15.8 billion Most of this sum - the claim of the Federal Agency for Housing Finance (FHFA), which in early September, said that on the eve of the collapse of the U.S. mortgage market Goldman Sachs sold mortgage-backed securities government mortgage agencies Fannie Mae and Freddie Mac totaling $ 11.1 billion and thus have incomplete information about the quality of these securities. As the deterioration in the U.S. housing market and rising defaults on home mortgages, these securities began to fall in price, and their customers - to incur losses. In addition to Goldman Sachs FHFA accused of selling low-quality mortgages Bank of America ($ 6 billion), Britain's Barclays ($ 5 billion) and 15 other financial institutions. Federal authorities believe that the total amount of "toxic" mortgage-backed securities sold to them by the federal mortgage agencies, is $ 196 billion Sam Goldman Sachs also believes that due to increased claims its legal costs could rise - though not as dramatically: the bank notified the SEC a possible increase in court costs from $ 2 billion to $ 2.6 billion
American observers have noted that the increase in legal costs related to the mortgage crisis still may be very out of place for American banks, which already began to suffer from new - European debt - the crisis (see "N-line" from 18/10/2011).
In late June, Bank of America has agreed to settle the claims of investors who suffered losses from purchases of mortgage bonds before the financial crisis. As part of the settlement of claims BofA paid $ 8.5 billion to investors in those affected investors - large funds BlackRock and PIMCO, insurer MetLife, Federal Reserve Bank of New York and others. Because of the benefits of such a large sum in the second quarter the bank recorded a loss of $ 8.8 billion
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