The U.S. state of Massachusetts has reached a multimillion dollar settlement with Goldman Sachs Group Inc
The settlement follows an investigation into the role of investment banks in the securitization and origination of mortgages and includes both a monetary payment and extensive relief to homeowners, the attorney general's office said in a statement.
Goldman spokesman Michael DuVally declined to comment.
Subprime mortgages, loans to buyers with poor credit, played a major role in the creation of the U.S. housing bubble earlier this decade. The deflation of that bubble was a major contributor to the worldwide recession.
(Reporting by Scott Malone; Additional reporting by Joseph Giannone; Editing by Brian Moss)