WASHINGTON — The Justice Department on Monday announced a $5 billion settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis. The government had accused the bank of misleading investors about the quality of its loans.

The $5.06 billion deal resolves state and federal investigations into the sale of shoddy mortgages in the run-up to the housing bubble and subsequent economic meltdown.

It requires the bank to pay a $2.39 billion civil penalty and an additional $1.8 billion in relief to underwater homeowners and distressed borrowers, along with $875 million in other claims.

“This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” Acting Associate Attorney General Stuart Delery said in a statement.

The agreement, smaller than deals reached with several of Goldman’s Wall Street counterparts, is the latest multibillion-dollar civil settlement arising from the economic meltdown in which millions of Americans lost their homes to foreclosure or found themselves jobless, investors suffered billions in losses and the housing market collapsed. Other banks that settled in the past two years include Bank of America, Citigroup and JPMorgan Chase & Co.

The sums paid by some of the nation’s largest banks, intended to offer financial relief to some homeowners, aren’t nearly enough to reverse the damage of the worst financial crisis since the Great Depression. The Goldman Sachs deal, which includes no criminal sanctions or penalties, is likely to stir further criticism about the department’s inability to hold bank executives personally responsible. Trying to address those concerns, Deputy Attorney General Sally Quillian Yates issued department-wide guidance last year aimed at encouraging more criminal prosecutions of individuals for corporate wrongdoing. It’s unclear how many more prosecutions will be brought as a result of the guidelines, which among other things direct civil and criminal lawyers to work together on investigations from the outset and focus on individuals.

Goldman had disclosed the settlement in January. Federal officials laid out additional allegations Monday in a statement of facts that accused the bank of making serious misrepresentations about the quality of mortgage-backed securities it sold.

The securities, promoted as relatively safe, contained residential mortgages from borrowers who were unlikely to be able to repay their loans.

The poor quality of the loans led to huge losses for investors and a slew of foreclosures, kicking off the recession that began in late 2007 as the housing market collapsed and investors suffered billions in losses.


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