The Feds are suing Goldman Sachs for $491 million in damages over its selling mortgage bonds to credit unions, according to the Wall Street Journal.
The suit filed by the National Credit Union Administration alleges that the $1.2 billion in mortgage-backed securities the bank sold to the two failed credit unions were “destined to perform poorly,” the WSJ reported.
According to the Journal, the NCAU has also launched two suits against the Royal Bank of Scotland and JPMorgan Chase.
All four lawsuits seek nearly $2 billion in damages.
Goldman had more bad news today, too. The firm revealed 15 days of trading losses in its latest 10Q.