Goldman Sachs May Seek Settlement with SEC

Submitted by Chris Gaetano on Fri, 05/28/2010 - 12:34

Goldman Sachs, facing a lawsuit from the SEC over the firm’s conduct during the financial crisis, may seek to settle with the government in order to avoid the fraud charge that would come with entering a court battle, said an article in the Wall Street Journal. In early April, Goldman was accused of failing to properly inform clients of the risks that came with investing in a pool of collateralized debt obligations that had been selected by a hedge fund that stood to gain if these securities defaulted, a circumstance that led the SEC to charge Goldman with fraud. Sources interviewed by the Journal estimate that a settlement, which would allow the firm to agree to charges more PR-friendly than fraud, could cost the firm between $250 million to, potentially, $1 billion.

Bookmark/Search this post with:

The New York State Society of Certified Public Accountants (NYSSCPA) encourages you to add a comment to this discussion.  You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law.  Please note that NYSSCPA reviews all comments prior to posting. NYSSCPA may edit comments for clarity or to keep out questionable or off-topic material.  All comments should be relevant to the post and remain respectful of other authors. To view the full “NYSSCPA Blog Terms and Conditions,” click here.