8-KOther EventsExhibits & Filings

GOLDMAN SACHS GROUP INC 8-K Report, Corporate Update (Apr 12, 2016)

Filed April 12, 2016For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

This 8-K filing from Goldman Sachs Group, Inc. (GS) on April 11, 2016, announces the company's definitive agreement to resolve ongoing investigations related to residential mortgage-backed securities (RMBS) issued between 2005 and 2007. The settlement is with the U.S. Financial Fraud Enforcement Task Force's RMBS Working Group, and importantly, the terms are substantially the same as those previously announced in an agreement in principle on January 14, 2016. This development is significant for investors as it brings closure to a material legal and regulatory matter that has been a source of uncertainty. The resolution addresses actual and potential civil claims from various governmental entities, including the U.S. Department of Justice and several state Attorneys General, as well as financial institutions. While the financial specifics are not detailed in this 8-K, the confirmation of the settlement terms, aligning with prior announcements, provides a clearer picture of the firm's liabilities.

Key Highlights

  • 1Goldman Sachs has reached a definitive agreement to resolve investigations concerning its RMBS activities from 2005-2007.
  • 2The settlement is with the U.S. Financial Fraud Enforcement Task Force's RMBS Working Group.
  • 3The terms of this definitive agreement are substantially the same as an agreement in principle announced on January 14, 2016.
  • 4This resolves actual and potential civil claims from the U.S. Department of Justice.
  • 5Claims from the Attorneys General of California, Illinois, and New York are also resolved.
  • 6The settlement includes claims from the National Credit Union Administration and certain Federal Home Loan Banks.
  • 7A press release detailing the settlement agreement is filed as an exhibit.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that Goldman Sachs Group, Inc. has reached a definitive agreement to resolve ongoing investigations into its securitization, underwriting, and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007.

The investigations were conducted by the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force, which includes the U.S. Department of Justice, the Attorneys General for California, Illinois, and New York, the National Credit Union Administration, and the Federal Home Loan Banks of Chicago and Des Moines.

No, the terms of this definitive settlement agreement are substantially the same as those previously announced in an agreement in principle on January 14, 2016. This filing confirms the finalization of those terms.

The resolved claims relate to Goldman Sachs' securitization, underwriting, and sale of residential mortgage-backed securities during the period from 2005 to 2007.