BARTIROMO: THE OTHER DEVELOPING STORY ON GOLDMAN SACHS WE ARE WAITING ON AN ANNOUNCEMENT OUT OF THE SECURITIES AND EXCHANGE COMMISSION EVERYBODY THINKS THAT GOLDMAN IS GOING TO SETTLE AND THAT'S WHY THE STOCK IS UP TODAY 5% KATE KELLY IS WITH ME NOW AND SHE'S BEEN COVERING THIS STORY KATE WHAT DO WE KNOW
KELLY: MARIA I HAVE SPOKEN TO COME PEOPLE WHO ARE FAMILIAR WITH THE MATTER AND I UNDERSTAND THAT GOLDMAN HAS REACHED A SETTLEMENT WITH THE SEC ON THEIR OUTSTANDING CDO INVESTIGATION THERE WILL BE A FINANCIAL COMPONENT TO THE SETTLEMENT I DON'T KNOW ANY MORE DETAILS THAN THAT IT HAS BEEN KEPT VERY DEEPLY UNDER WRAPS BUT THAT'S WHAT I GOT SO FAR
BARTIROMO: SO WE KNOW THERE IS A FINANCIAL COMPONENT BUT WE DON'T KNOW THE SIZE OF THIS INTERESTING TO LOOK AT THIS STOCK RISE TODAY IN A MARKET THAT IS DOWN AS PEOPLE SPECULATE THAT IN FACT WE ARE GOING TO SEE A SETTLEMENT DO YOU FIND THAT THERE IS GOING TO BE ANY CHANGE IN TERMS OF EXECUTIVES ANY OTHER CHANGES THAT COULD IMPACT GOLDMAN
KELLY: YOU KNOW I AM NOT HEARING ANY EVIDENCE OF THAT I CAN TELL YOU THE SPECULATION AMONG INVESTORS I HAVE SPOKEN TO RECENTLY IS THAT LLOYD BLANKFEIN IS VERY SAFE I THINK THERE HAS BEEN CHATTER AND THIS IS SIMPLY RUMOR AT THIS POINT THAT DOWN THE ROAD THERE COULD BE SOME CHANGING ON THE BOARD POSSIBLY A NEW CHAIRMAN DOWN THE ROAD BUT I THINK LLOYD IS FINE I HAVE NOT HEARD OF ANY MANAGEMENT CHANGES I WILL CAVEAT THAT WITH WE COULD BE SURPRISED BUT I DON'T THINK THERE IS ANYTHING THAT SIGNIFICANT COMING OUT OF THE SETTLEMENT TODAY THAT IS NOT THE EXPECTATION I AM HEARING
BARTIROMO: KATE LET ME ASK YOU THIS BECAUSE ALONG WITH THE SUIT FROM THE SEC TO GOLDMAN CAME OTHER LAWSUITS FROM INDIVIDUALS AND OTHER PEOPLE WHO JUMPED ON THE BANDWAGON WHERE ARE WE IN TERMS OF LEGAL EXPENSES THAT FACE GOLDMAN AT THIS MOMENT?
KELLY: WELL I WOULD GUESS WE WILL GET A LITTLE MORE CLARITY ON THAT NEXT WEEK WHEN THEY REPORT EARNING WHICH I BELIEVE IS TUESDAY AND MY HUNCH IS AND AGAIN THE FOLKS I TALKED TO SAID THIS MAKES SENSE THAT THEY ARE TRYING TO GET SOME NEWS DONE BEFORE WE GO INTO EARNING SO THAT THEY CAN PROVIDE INVESTORS WITH A LITTLE MORE CLARITY ON WHAT THE COST WILL BE BOTH FOR FINREG AS WELL AS PRIVATE LITIGATION AND THEY'D LIKE THIS SETTLED BEFORE THEY GO INTO THE TUESDAY CALL SO I THINK WE WILL GET MORE DETAILS IN THE COMING DAYS THEY ACTUALLY FACING A DEADLINE EARLY NEXT WEEK TO RESPOND TO THE SEC COMPLAINTS THEY HAD ALREADY EXTENDED THAT ONCE SO IT'S INTERESTING THAT THEY ARE GOING TO WRAP THIS ALL UP BEFORE THEY HAVE TO FILE THAT RESPONSE PUBLICLY.
BARTIROMO: AND OFTEN TIMES WHEN YOU SEE A SETTLEMENT OF THIS KIND THE COMPANY DOES NOT ADMIT OR DENY ANY WRONGDOING IS THAT WHAT YOU ARE EXPECTING AS WELL WHAT WILL THIS SETTLEMENT LOOK LIKE?
KELLY: YOU KNOW ALL EYES ARE GOING TO BE ON THAT AS WELL AS WHAT THE FINE AND/OR DISCOURAGEMENT OF PROFITS THAT THE SEC MAY HAVE THOUGHT WERE INAPPROPRIATE ARE I DON'T HAVE DETAILS ON WHETHER THERE WILL BE DETAILS ON THAT AND WHAT THE FINANCIAL FIGURES WILL BE I AM WORKING ON THAT AND YOU WILL BE THE FIRST TO KNOW IF WE GET IT.
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