Goldman to admit 'negligence' if fraud charge dropped

This means it will offer to admit to a lesser charge of ‘negligence' instead of ‘wrong-doing' if the main charges are dropped and potentially pay a financial penalty for poor processes, the Sunday Telegraph reports. The SEC claims Fabrice Tourre, a Goldman banker, mislead investors in the Abacus vehicle. He is accused of not telling long investors in the deal, ACA Management and the German bank IKB, that hedge fund Paulson had taken a short position on house prices. Goldman has denied the charges, saying they are wrong both in fact and law, but the investment bank is worried it wil...