Goldman Settles with SEC

The investment banking giant agrees to pay $550 million. Plus: One million people to lose their homes in foreclosures this year.

Goldman Settles with SEC Female: Well, there is a lot of news on the economic front. Male: And for more we’re joined by Jill Schlesinger from the CBS Moneywatch.com. She’s live in the New York of course. Jill good morning to you on this Friday. Jill Schlesinger: Good morning. Male: And then first quickly can you comment on the Goldman Sachs buddy up. Jill Schlesinger: Well, I think the after hour market tells you everything you need to know, Goldman Sachs has decided to settle with the SCC $515 million dollars and upon that announcement the stock traded up. It was up about 4 1/2% in the session. Another 4 12/% after the market closed. I think everyone wants to put this behind them. The SCC didn’t want a long drawn out fight, but they did want to make a point that Goldman needed to disclose more to their people when they were selling these very complicated securities. Female: Alright. Male: Okay. Female: And we’ve a new report now Alta from realty track on the nation’s housing market which has been pretty dismal for a while. This news is being described as depressing. What do you have to say about the report Jill? Jill Schlesinger: It was depressing actually. We are on track to have one of the probably the worst year in terms of foreclosure filings. In the first half of the year, 1.7 million households received notices and that means we’re going to probably a 3.2 million foreclosure filings this year. A million people going to lose their homes, it’s staggering to us. And you know it doesn’t look like that this is a trend that it’s going to reverse itself for any time soon. Male: So what does take us so long for the housing market to recover? Jill Schlesinger: There are a couple of reasons. You know, when you think about the internet bubble and that bursting you could just say, “Wow! I’ve got a rotten stock I’m going to sell it.” It takes five seconds to push your button or you call your broker. It takes a longer time to sell a house you’re living in it, and we also have this other problem we call it shadow inventory. There are a lot of people underneath the surface who are really underwater on their mortgages. They have the idea the idea that they want to sell their house so there’s just a lot of people that would like to dump their homes and that creates lots of supply and it’s going to take a while to get that supply burned off. Male: Wow! Well, thanks for the insight Jill. We’ve got to roll right now. You have a good weekend. Hopefully we get out of this soon, thank you Jill.