Securities firms are responsible for due diligence on the investments they bring to market. Goldman Sachs settled with the state of Massachusetts for packaging credit bombs known as subprime loans into mortgage backed securities.
Goldman Sachs will pay the state $10 million and reduce loan amounts at a cost of $50 million. It came with the usual qualifiers.
Goldman Sachs did not admit to any wrongdoing as part of the settlement. Company spokesman Michael DuVally said Goldman is "pleased to resolve this matter."
Another sweet settlement for Goldman. It's not $12.9 billion in AIG taxpayer money for counter party settlements, but it kept Bernie Madoff's handcuffs at bay.