MORE LIKE THIS, PLEASE

The MOTU aren't going to change unless they get hit where they will hurt most.

Goldman to Pay $60 Million in Subprime Settlement (Update1)

By Kathleen M. Howley and Christine Harper

May 11 (Bloomberg) -- Goldman Sachs Group Inc. agreed to pay about $60 million to settle a Massachusetts investigation into the packaging of mortgage securities at the root of the collapse of the U.S. housing market.

The agreement calls for the bank to pay about $50 million to compensate homeowners and the rest to the state, Massachusetts Attorney General Martha Coakley said today at a news conference in Boston.

For the “thousands” of homeowners in Massachusetts whose mortgages are serviced by Goldman Sachs’s Litton Loan Servicing LP division, Goldman will help refinance or modify the terms of qualified loans, Coakley said. For homeowners with mortgages held by Goldman entities, the bank agreed to reduce the principal of first mortgages by up to 25 to 30 percent and second mortgages by 50 percent or more, she said.