DSNews The homepage of the servicing industry
As expected, fourth quarter earnings for Goldman Sachs took a huge hit as a result of last week’s announced settlement for 5 point 1 billion dollars to resolve claims of mortgage-backed securities fraud. The investment banking firm’s Q4 2015 net earnings totaled 765 million dollars, approximately one-third of the 2 point 17 billion net earnings reported for the prior-year quarter, according to the firm’s Q4 and full year 2015 earnings statement released Wednesday.
Goldman Sachs’ net earnings for the full year of 2015 were 6 billion dollars, down from nearly 8 and a half billion dollars in 2014. Earnings per common share were reported at 12 dollars and 14 cents for 2015, having been reduced by 6 dollars and 53 cents due to the RMBS settlement. Despite the substantial decline in net earnings and earnings per common share, Goldman Sachs Chairman and CEO Lloyd Blankfein characterized the results as quote, solid, close quote.
Freddie Mac has dropped its 1 point 3 billion dollar lawsuit against Deloitte that accused the accounting firm of negligence regarding the auditing of certain mortgage loans the GSE purchased from now-defunct mortgage lender Taylor Bean & Whitaker. Both parties agreed to dismiss the suit without prejudice. Freddie Mac originally sued Deloitte in September 2014 claiming that Deloitte, which audited Freddie Mac loans from 2002 to 2009, had spotted red flags in the Taylor Bean loans which indicated fraud.
