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Goldman set to settle SEC fraud case soon: report

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Lloyd Blankfein, CEO of Goldman Sachs, delivers testimony before the Senate Homeland Security and Governmental Affairs Investigations Subcommittee hearing on ''Wall Street and the Financial Crisis: The Role of Investment Banks'' on Capitol Hill in Washington, April 27, 2010. REUTERS/Jim Young

Lloyd Blankfein, CEO of Goldman Sachs, delivers testimony before the Senate Homeland Security and Governmental Affairs Investigations Subcommittee hearing on ''Wall Street and the Financial Crisis: The Role of Investment Banks'' on Capitol Hill in Washington, April 27, 2010.

Credit: Reuters/Jim Young

LONDON | Thu Apr 29, 2010 12:53pm EDT

LONDON (Reuters) - Goldman Sachs may soon settle its fraud case with the U.S. regulator, the New York Post reported on Thursday, opting to end a legal fight rather than endure a repeat of the public flogging it received this week.

The Post report, citing sources familiar with the matter, said Wall Street's top investment bank was mulling closing the fraud case with the U.S. Securities and Exchange Commission (SEC) to limit damage to its reputation.

"It's almost a certainty that there will be a settlement," the paper quoted a source as saying.

Goldman could not immediately be reached for comment in London.

Goldman Chief Executive Lloyd Blankfein and other executives faced a blistering cross-examination from U.S. lawmakers about the company's ethics and behavior toward its clients on Tuesday.

The SEC has filed a civil fraud suit against Goldman, charging that it hid vital information from investors about a mortgage-related security. Goldman has denied the charges.

(Reporting by Steve Slater and Douwe Miemema, Editing by Sitaraman Shankar)
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Comments (14)
tdebat wrote:
Unless someone gets prison time justice has not been done!

Apr 29, 2010 6:54am EDT  --  Report as abuse
reporter101 wrote:
Settle a fraud case? Try say that to the millions of americans who lost their jobs, homes and pension. The nation suffered as the few bankers pocket billions in bonuses – and Goldman wants to settle…?

Apr 29, 2010 6:59am EDT  --  Report as abuse
STORYBURNcom_0 wrote:
Part of the settlement must be to raise the tax rate on wall street bonuses. we need to pay for welfare

Apr 29, 2010 7:17am EDT  --  Report as abuse
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