Two days after Goldman Sachs execs were battered by a Senate subcommittee during a hearing into its role in the financial crisis, the New York Post reports the firm, which has vehemently denied the SEC’s fraud allegations, is moving toward a settlement in the case. From the Post’s story:
“It’s almost a certainty that there will be a settlement,” said a source.
As another person put it, the SEC has an “unlimited supply of ammunition” in the form of e-mails and records that it could release, and Goldman officials would like to avoid having those documents fired back at them the way they were on Tuesday.
Up to now, Goldman, which has endured a withering fusillade of criticism from the public and politicians, has declared that the SEC’s case against it and Tourre has “no basis in fact.”
However, the growing view inside the firm is that Goldman may not be able to afford going toe-to-toe with the SEC in the court of public opinion if the civil case were to head to trial.