Goldman agrees to pay record fine

Goldman Sachs has agreed to pay $550 million to settle civil fraud charges over how it marketed a subprime mortgage product, ending months of negotiations that rattled the bank's clients and investors.

The US Securities and Exchange Commission said the penalty was the largest ever for a financial institution, and leaves the door open for future civil suits.

But many investors viewed the $550 million settlement as a slap on the wrist for a bank that earned more than $13 billion last year.

"They pay $550 million and they get an $800 million pop in their stock price ... they got off easy," said Kevin Caron, a market strategist from New Jersey.

The company's shares later rose further, bringing the total gain in Goldman's market value on Thursday to about $6.6 billion. In the months after the SEC pressed charges on April 16, Goldman's market value fell by more than $25 billion.

Goldman, which regretted failing to disclose information in marketing materials, agreed to require two internal committees to vet complex deals linked to residential mortgages.