Goldman Sachs: Global wealth advisory firm worth $2.4 billion

The Wall Street Journal article Goldman Sachs has agreed to pay $2 billion to settle allegations it defrauded investors of tens of millions of dollars over several years.

The settlement was announced Monday.

The bank’s former chief executive, Lloyd Blankfein, and the head of the firm’s private equity arm, James Packer, will each be paid $2 million, according to a release from the Securities and Exchange Commission.

Packer also will pay a $400,000 penalty.

Goldman Sachs also agreed to give up a share of its private equity business.

Goldman, which is based in New York, was the subject of a criminal investigation into alleged fraud and embezzlement over a number of years, including one of the largest U.S. bank investigations in history.

The SEC said the settlement resolves the matter by settling with a broad array of investors, including those who had made investments in the firm.

It said the investigation was not related to the matter of the alleged fraud, but rather the actions of Goldman Sachs’ board of directors.

The allegations related to Goldman Sachs trading positions in the futures market in the summer of 2012.

Goldman had agreed to settle earlier this year.

Goldman said it will use the settlement to fund a new investment fund focused on “risk-reduction strategies.”

The SEC’s release noted that the settlement also will help fund a program of education and training that will focus on the role of private equity firms and investment management firms in financial markets.