UPDATE 1-Goldman Sachs, U.S. agency in mortgage settlement worth $1.2 bln
August 22, 2014 at 18:18 PM EDT
Aug 22 (Reuters) - Goldman Sachs Group Inc has agreed to a settlement worth $1.2 billion to resolve a U.S. regulator's claims the bank sold Fannie Mae and Freddie Mac faulty mortgage bonds, the regulator announced Friday.