Illinois and California’s pension funds are among the recipients of a $5.06 billion settlement with Goldman Sachs Group over allegations of misrepresented mortgage-backed securities.
Illinois’ pension funds will receive $25 million — roughly $23.8 million to the $42.3 billion Illinois Teachers’ Retirement System, Springfield; $737,500 to the $14.6 billion Illinois State Board of Investment, Chicago, which oversees the State Employees’ Retirement System, General Assembly Retirement System and Judges’ Retirement System; and $472,500 to the $15.9 billion Illinois State Universities Retirement System, Champaign; Illinois Attorney General Lisa Madigan announced in a news release Monday.
Illinois will also receive $16 million in consumer relief.
Additionally, the $290.7 billion California Public Employees’ Retirement System, Sacramento, and $178.7 billion California State Teachers’ Retirement System, West Sacramento, will receive funds, confirmed a spokeswoman for California Attorney General Kamala D. Harris in an e-mail.
CalPERS is anticipated to receive $8 million. CalSTRS’ amount could not immediately be learned. The state will also receive funds for consumer relief.
Goldman Sachs announced the national settlement agreement Monday, resolving claims relating to its securitization, underwriting and sale of residential mortgage-backed securities from 2005 to 2007. The settlement also includes a statement of facts to which the bank agreed.
As proposed in January, Goldman Sachs will pay a $2.39 billion civil penalty, make $875 million in cash payments and provide $1.8 billion in consumer relief.
“We are pleased to put these legacy matters behind us. Since the financial crisis, we have taken a number of significant steps to strengthen our culture, reinforce our commitment to our clients, and ensure our governance oversight and processes are robust,” said Lloyd Blankfein, Goldman Sachs chairman and CEO, in a company news release.
A Goldman Sachs spokesman did not have further comments beyond the firm’s news release.