Goldman in talks with SEC for possible settlement

Lawyers of embattled Goldman Sachs met with representatives of the US market regulator SEC this week, a move seen as an attempt to settle the lawsuit against the banking major, according to reports.

Goldman's lawyers met this week with representatives of the Securities and Exchange Commission (SEC) in the first step toward a potential settlement, The Wall Street Journal has reported.

On April 16, the SEC charged Goldman of defrauding and causing losses of over $1 billion to investors by misrepresenting facts about a financial product tied to the sub-prime mortgages.

Goldman has denied the allegations.

"The preliminary settlement talks held Tuesday between Goldman co-general counsel Gregory Palm and other lawyers representing the New York company and SEC officials didn't include any specific settlement terms, such as the amount of a fine or agreements Goldman could make with the agency," the daily said quoting people familiar with the matter.

According to the publication, Goldman's willingness to even meet with the SEC is a sign that executives are scaling back their combative stance since the lawsuit was filed last month.

"While the company hasn't retreated from its public statements that the suit's accusations are groundless, some Goldman executives are taking a softer line with restive shareholders," the report noted.

The discussions with SEC comes ahead of Goldman's shareholder meeting scheduled for Friday. "Any settlement could take months, but Goldman's lawyers have concluded that the company needs to make a serious effort to resolve the SEC lawsuit," the daily said.