Massachusetts AG announces $60 million settlement with Goldman for its role in subprime crisis

Massachusetts AG in $60 million deal with Goldman

BOSTON — The Massachusetts attorney general has reached a $60 million settlement with investment banker Goldman Sachs for its role in the state’s subprime lending problem.

Goldman has pledged to provide $50 million in relief to homeowners and make a $10 million payment to the state as part of the settlement. A spokeswoman for Attorney General Martha Coakley says the deal is the first of its kind in the country.

Coakley has mounted a series of legal actions, as she has traced the state’s subprime problem from street-level brokers to mortgage providers and, now, to investment houses that turned the risky home mortgage loans into stock market commodities.