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