Yesterday, the Massachusetts Attorney General's Office announced that it and Goldman Sachs & Company have entered into a settlement agreement relating to the Attorney General’s investigation of subprime lending and securitization markets, including the role of investment banks in the origination and securitization of subprime loans in Massachusetts. Goldman has agreed to provide loan restructuring (principal write-downs) valued at approximately $50 million to Massachusetts subprime borrowers who hold loans with Goldman entities, which "is designed to enable borrowers to replace problem loans with new, more affordable loans that take into account the current value of their properties." Among other measures, Goldman has agreed to provide principal reductions ranging up to 25-35% for first mortgages and 50% or more for second mortgages. For loans serviced for third parties by Goldman's affiliated servicer, "Goldman has agreed to assist qualified borrowers with finding refinancing options and other alternatives to foreclosure." Goldman also agreed to make an additional $10 million payment to Massachusetts, and will continue to cooperate with Attorney General Martha Coakley in her ongoing investigation of industry practices. The settlement and investigation into securitizers "[r]eflect the latest aspect of the Office’s comprehensive enforcement approach to combating subprime lending and the foreclosure crisis