HELENA – Goldman Sachs has agreed to buy back over $25.65 million in auction-rate securities sold to Montana investors, as part of a national settlement regarding the company’s sales of the investments.
Commissioner of Securities and Insurance Monica Lindeen says Montana’s settlement with Goldman Sachs Inc. also calls for a $75,000 fine to be deposited in the state’s general fund.
Regulators alleged that banks and securities firms misled customers into believing auction-rate securities were safe, cash-like investments. However, customers were unable to get their money out when the market collapsed in early 2008.
Goldman Sachs reached a settlement in principle in August 2008 that called for buying back an estimated $1.5 billion in auction-rate securities and paying $22.5 million in fines. Other firms reached similar settlements.