Eric Schneiderman for Attorney General

Goldman Sachs will give New York $670 million as part of $5 billion settlement: AG Schneiderman

May 18, 2016

As published in AM New York on April 11, 2016.

New York will receive $670 million from Goldman Sachs as part of the bank’s $5 billion federal settlement on Monday following its role leading up to the 2008 financial crisis, state Attorney General Eric Schneiderman said.

More than two thirds of that will be in the form of creditable consumer relief, Schneiderman said, like the state’s mortgage assistance program. The funds add to prior settlements with banks, including JP Morgan Chase and Morgan Stanley, totaling more than $5.3 billion in relief for New Yorkers, he said.

“We’ve helped tens of thousands of families and we’re looking forward to helping tends of thousands more,” Schneiderman said, speaking at a news conference at his office. “Each settlement builds on the work of the last settlement.”

Of Monday’s settlement, $190 million will be awarded as cash.

And while Schneiderman said there have been significant settlements with big banks, there is always more work to do.

“There are more financial institutions out there and our work’s not done,” he said. “We get more creative with every deal and you should expect to see more deals in the future.”

The bank’s $5.06 billion federal settlement includes $1.8 billion in relief, which includes loan forgiveness and financing for affordable housing, according to the Department of Justice.

“We are pleased to put these legacy matters behind us,” a Goldman Sachs spokesman said in a statement. “Since the financial crisis, we have taken significant steps to strengthen our culture, reinforce our commitment to our clients, and ensure our governance processes are robust.”