US bank Goldman Sachs has agreed to pay $550m (£356m) to settle civil fraud charges of misleading investors.

The charges concerned Goldman’s marketing of mortgage investments as the US housing market faltered.

US finance watchdog the Securities and Exchange Commission said it was the biggest fine for a bank in its history.

Terms of the settlement are subject to approval by a federal judge.

The SEC said Goldman had acknowledged that marketing material contained “incomplete information”.

In a statement, Goldman did not admit legal wrongdoing but said the move was “the right outcome for our firm, our shareholders and our clients”.

Despite the record fine, Goldman shares rose by 4.5%, reflecting the fact that many analysts felt the firm had got off lightly. BBC.

To most of us $550m seems like a vast amount of money to Goldman Sachs its loose change – little more than a day’s trading revenue – this isn’t a fine it’s more like goodwill payment – a pat-on-the-back – Goldman Sachs made billions out of lying to its clients – how can $550m be seen any other way?

We’ve learned nothing from the banking crisis – why am I not surprised?