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Goldman and SEC Close to Settlement?
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(July 15, 2010 - Thursday) - Not quite, but according to a WSJ piece the SEC has been having discussions about resolving the fraud lawsuit brought against Goldman this spring.
A settlement idea was apparently floated by Goldman, and they seemed to very interested in ending the barrage of bad publicity the company has received over the past several months.
One of the greatest challenges any settlement here is structuring the settlement narrowly enough to satisfy Goldman and limit legal liability, balanced with the abilioty for the SEC to pursue additional recourse if they discover more wrongdoing. It’s a narrow path to say the least.
Goldman has been adamant that they want to avoid the case ending with a civil fraud charge. Even if the settlement were to be made where Goldman neither admitted nor denied committing fraud the company’s good standing would likely be damaged. A settlement would also increase the likelihood of fraud lawsuits being filed in the civil arena.
Some experts believe that Goldman will end up agreeing to a fine more than $1 billion to end the fraud lawsuit brought forth by the SEC.
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