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Report: Goldman, SEC not close to deal

May 22, 2010 at 10:00 AM   |   Comments

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NEW YORK, May 22 (UPI) -- Goldman Sachs Group Inc. and U.S. regulators aren't close to a deal to settle fraud charges, The Wall Street Journal reported.

Goldman shares rose Friday on speculation a fraud lawsuit filed by the Securities and Exchange Commission would be settled. But that speculation is unfounded, sources told the Journal.

Shares climbed as much as 5.4 percent to outpace the Dow Jones Industrial average in midday trading on the New York Stock Exchange.

The SEC filed a lawsuit April 16 in U.S. District Court in New York accusing Goldman and trader Fabrice Tourre of selling a collateralized debt obligation without proper disclosures. The lawsuit says Goldman failed to disclose that Paulson & Co., a hedge-fund firm, selected some of the mortgage securities while betting on the decline of the debt obligation, the newspaper reported.

Neither Goldman nor the SEC would comment.

Goldman's stock rose 3.3 percent Friday, closing at $140.62 per share.

© 2010 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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