Is today the day for a Goldman Sachs-SEC settlement?
Traders certainly think so. Goldman shares spiked Thursday afternoon on news the Securities and Exchange Commission plans a major announcement at 4:45 p.m. EDT.
Goldman (GS) shares surged $5 to $144, their highest level in five weeks, after the SEC released its press conference plans. The SEC didn’t say what it would be announcing, but investors have been speculating about a possible settlement of the SEC’s fraud suit against Goldman.
A settlement could cost Goldman $1 billion or more, analysts have said, while perhaps removing some of the pressure on the firm’s reputation. The SEC, meanwhile, could get a gaudy payout from the most profitable Wall Street firm.
We will find out for sure in an hour.
