Insightful look at the state of play in the Goldman Sachs vs. SEC showdown by John Carney. According to Carney (a former Skadden associate) rumors of an imminent settlement of the matter are overblown. While of course Vampire Squids don’t make public comments, according to Carney’s sources, the bank is gearing up for a full-fledged defense against the SEC allegations, while simultaneously exploring the possibility of a settlement. Moreover, the same sources claim that Goldman’ lawyers (presumably Rodge Cohen and his S&C minions), have only had a one meeting with the SEC, at which there was no discussion of a possible settlement. Seemingly insurmountable are the fraud allegations: Goldman apparently won’t sign off to any deal affirming that Goldman committed fraud, although the bank supposedly would be willing to concede negligence in omitting a material fact. On the other hand, the SEC will not accept any settlement in which Goldman neither admits nor denies wrongdoing.
Assuming all of this information is accurate, it is especially interesting that Goldman (and Rodge) plan on skipping the pro forma motion to dismiss, and will proceed directly to filing a response denying the charges in detail. The deadline for Goldman’s next move is mid-June.
-posted by brian
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