RBS To Recoup $100M In Goldman Sachs Payout - Newspaper

16th Jul 2010 07:58

LONDON (Dow Jones)--Investment bank Goldman Sachs (GS) is to pay a $100 million settlement to Royal Bank of Scotland Group PLC (RBS.LN) as part of an acknowledgment that investors were led into buying a toxic mortgage product, reports U.K. newspaper The Times Friday. Goldman has agreed to pay out a total of $550 million to settle charges that the Wall Street bank tricked investors into buying a toxic mortgage product during the housing boom. As part of the settlement, Goldman acknowledged that its marketing of Abacus 2007-AC1, a synthetic collateralised debt obligation, was flawed. The bank agreed to change its procedures, the report says. However, the fine is lower than predicted and the bank avoids making any admission of wrongdoing amid suggestions that the Securities and Exchange Commission had brought weak evidence, the report says. Newspaper Web site: http://www.timesonline.co.uk -London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320 (END) Dow Jones Newswires July 16, 2010 02:58 ET (06:58 GMT)