NEWS FLASH: FED SANCTIONS GOLDMAN SACHS OVER SHADY MORTGAGE PRACTICES

[flpoljunkie]

FED SANCTIONS GOLDMAN SACHS OVER SHADY MORTGAGE PRACTICES

The Federal Reserve sanctioned Goldman Sachs over a former subsidiary’s use of “robo-signing,” an all-too-common procedure in which foreclosure documents were processed without anyone actually examining the case. The Fed action orders Goldman to retain an independent consultant to review foreclosure proceedings initiated over a certain period of time by Litton Loan Servicing LP, which was owned by Goldman, and to “provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified.” Monetary sanctions will likely be announced later, as well.

http://thinkprogress.org/economy/2011/09/01/310225/fed-sanctions-goldman-robo-signing/

[closeupready]

1. LOL

Well, that must hurt, I'm sure. :sarcasm:

[flpoljunkie]

2. The 'remediation to borrowers' part could well hurt. Their stock is down almost 4% today.

[rhett o rick]

3. Yeah and the insiders had sold short, I bet. nm

[flpoljunkie]

4. No doubt.