In April of 2016, the DOJ, along with other federal and state regulators, announced a $5 billion settlement with Goldman Sachs for its part in packaging, securitizing, marketing, and selling RMBS in the years leading up to the crash.
The settlement makes clear that the bank falsely assured investors that its RMBS were backed by sound mortgages, when it knew that they were in fact full of mortgages likely to fail.
Earlier, in July 2010, Goldman Sachs agreed to pay $550 million to settle SEC charges that the firm misled investors in the sale of a mortgage-backed security called Abacus 2007-AC1.
The SEC charged “that Goldman misled investors in a subprime mortgage product just as the US housing market was about to collapse.”
In agreeing to pay the penalty, Goldman “acknowledged that its marketing materials for the subprime product contained incomplete information.”