Goldman Not Keen On Settling On Fraud

The Financial Times reports that Goldman Sachs is hoping to settle those SEC fraud charges on the less serious offence of 'omitting or mis-stating material facts to investors'.

The newspaper reports that Sanford Bernstein analyst Brad Hintz has estimated that Goldman might ultimately strike a deal with the regulator which would involve payment of a $250m fine, together with a $370m buyout of the investors in Abacus, the CDO deal at the centre of the charges.

In the meantime, The Wall Street Journal reports that the Dow Jones Industrial Average stock index fell 7.92% in May, the worst decline in that month since 1940.

And Bloomberg reports that hedge fund Pequot Capital Management and CEO Arthur Samberg have agreed to pay $28m to settle a 6 year insider trading probe launched by the SEC. Neither the hedge fund or Mr Samberg admitted wrongdoing. Samberg has also agreed to being barred from the investment-advisory business, except for completing the closure of Pequot.

Finally, The Independent reports that UK market regulator The Financial Services authority is to receive a 10% increase in its budget for 2010/11 (to $662.5m), and the funds will be provided, in the main, by increased levies on the bigger financial institutions it regulates.

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