Goldman To Seek Paulson CDO Settlement

Goldman Sachs has determined that it must settle charges that it defrauded investors in a collateralized debt obligation it structured for hedge fund Paulson & Co.

A deal with the Securities and Exchange Commission, which sued Goldman for allegedly failing to disclose Paulson’s role in the construction of the CDO or the hedge fund’s short interest in it, could cost Goldman between $1 billion and $5 billion.