Goldman: to settle or not to settle?
“There’s a very low probability that Goldman could get the case dismissed”
…so Goldman may be better off cutting its losses instead of fighting according to professors of securities law who have examined the U.S. Securities and Exchange Commission’s lawsuit against the bank.
Bloomberg: “There’s a very low probability that Goldman could get the case dismissed,” said Thomas Hazen of the University of North Carolina at Chapel Hill, whose books include a two-volume treatise on broker-dealer law. “Every pretrial motion the SEC wins, Goldman gets one step closer to losing.”
…
It must weigh the risks of a drawn-out legal battle against the benefits of a more immediate resolution.
Whilst many observers are considering the doomsday scenarios GS could face, one well know supporter has “Great Confidence” in the firm:
Bloomberg: Berkshire Hathaway Inc.’s Warren Buffett, who injected $5 billion into Goldman Sachs Group Inc. in 2008, remains comfortable with his investment after regulators sued the bank for fraud, said Berkshire Director Thomas Murphy.
He might have 500m reasons to be every year but, more importantly, his nicknames include Sage and Oracle in their title. So not a man to bet against.
