What areas may a financial expert witness consult on? Financial experts may provide insight and testify in cases involving investments, financial valuation, securities, trading, and fraud examination. Goldman Sachs Group Inc. is in the news after agreeing to pay over $5B in connection with its sale of residential mortgage backed securities. Justice Department Acting Associate Attorney General Stuart F. Delery describes the penalty as holding Goldman Sachs accountable for serious misconduct in the securities market. The Justice Department states:
The Justice Department, along with federal and state partners, announced today a $5.06 billion settlement with Goldman Sachs related to Goldman’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. The resolution announced today requires Goldman to pay $2.385 billion in a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and also requires the bank to provide $1.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing. Goldman will also pay $875 million to resolve claims by other federal entities and state claims. Investors, including federally-insured financial institutions, suffered billions of dollars in losses from investing in RMBS issued and underwritten by Goldman between 2005 and 2007.
Financial experts examine allegations of investment misconduct such as those brought against Goldman. These experts are knowledgeable in accounting, securities rules and regulations, financial forensics, and are a valuable asset in the financial litigation process.
By: Karen Olson
20+ years of experience in legal research.