Goldman Sachs is expected to ask for more time to respond to a lawsuit filed by the Securities and Exchange Commission accusing the Wall Street powerhouse of fraud, sources told The Post.
The gold-plated investment bank run by CEO Lloyd Blankfein, which has already filed for one extension tied to the fraud case, is likely to seek an extra 30 days beyond its previous July 19 deadline, the sources said.
The government regulator’s April 16 charges center on allegations that Goldman defrauded investors when it originated and sold a complex batch of mortgage-related securities back in 2007 to a group of institutional investors at the request of hedge fund titan John Paulson, who bet against the offering.
A Goldman spokesman declined to comment.
Sources tell The Post that Goldman has argued that the SEC has had years to build its case against the firm, while the maligned investment bank has had to handle other pressing issues, including dealing with other investigations while the firm prepares to release its second-quarter results on July 20.
An extension, not uncommon in complicated securities cases, could also allow the two sides to engage in settlement talks — which sources say would start once the financial regulatory reform bill is finalized, something that could happen before the end of the month.
Meanwhile, Goldman is expected to be looking at another successful quarter relative to its peers on the back of trading and improvements in other businesses.