Goldman Sachs Group Inc. has agreed to pay $60 million in fines and reductions in loan principal for subprime borrowers after a probe into how major investment banks are involved in writing loans to borrowers with poor credit, the Massachusetts attorney general said Monday.

Attorney General Martha Coakley said she was pleased that Goldman had cooperated during the investigation and that it had committed itself to help borrowers in the state who are struggling with "unsustainable subprime loans."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.