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发帖数: 2063 | 1 The news is important and may affect the market.
http://www.ft.com/cms/s/0/3cfc666e-69e3-11df-a978-00144feab49a.html?ftcamp=rss
Goldman Sachs is hoping to avoid the Securities and Exchange Commission’s
charge of fraud by reaching a settlement on a lesser offence and agreeing to
a fine of hundreds of millions of dollars, according to people familiar
with the bank’s negotiating position.
Goldman, which has been accused of civil fraud over a complex mortgage-
related security called Abacus, is trying to focus settlement talks with the
SEC on the less serious charge of omitting or mis-stating material facts to
investors.
Regulatory experts say that companies charged with fraud often seek a
settlement on a lesser charge but it is unclear whether the SEC would agree
to downgrade such a high-profile case.
A lesser charge would reduce Goldman’s risk of being sued by investors and
help the bank avoid the reputational damage of having settled a fraud charge
, according to people familiar with the situation.
People involved in the discussions say that, even if regulators agree to
consider a lesser charge, Goldman would neither admit nor deny wrongdoing –
a common practice among companies settling with the SEC.
Goldman and the SEC declined to comment.
In a note to clients on Thursday, Brad Hintz of Bernstein Research estimated
that Goldman might pay a fine of $250m and compensate investors by buying
out their exposure to the Abacus deal at a cost of $370m.
Although groups like AIG and Prudential have paid higher sums to settle SEC
cases and compensate investors, a fine of $250m would rank among the highest
paid by a US company, lawyers said.
If the two sides fail to reach a settlement, Goldman would file its defence
to the fraud charges in court and then gain access to the witness statements
gathered by the SEC through discovery.
The bank hopes these would show weaknesses in the SEC case that it
deliberately misled investors, particularly ACA, the bond insurer that
managed the Abacus collateralised debt obligation.
However, people familiar with the SEC’s thinking believe the bank’s
bargaining position is itself weak since Goldman wants to limit the damage
to its reputation and share price by settling the case quickly.
Goldman has 60 days from the date the charges were made on April 16 to reach
a settlement or file a defence. If the case goes to court, the SEC is
likely to press for it to be heard by a jury. |
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