For some people, the big issue with the Goldman Sachs (NYSE: GS) settlement with the SEC over CDO-related fraud charges is whether Judge Barbara Jones will approve it. Another issue, assuming it is approved, is whether it will hurt or help other aggrieved investors; there are more than a few.

Goldman Sachs felt it was important, as it always is in these situations, to avoid admitting guilt to any fraud charges (fraud news). But will that shield it from more litigation? Naked Capitalism offers its opinion: "It is hard to see how anything in the settlement, if affirmed, would be negative for private parties considering lawsuits against sellers of CDOs." Investors that were named in the complaint, notably IKB, will receive $250 million via a Fair Fund distribution--not a shabby amount. IKB was paid back in full. RBS fared well also.

"While Goldman didn't 'admit guilt,' they said their statements misled Investors and caused them to lose money. Since Goldman's pitchbook and offering document were completely normal for the market, many other deals likely fit in this category. Even if the SEC doesn't bring more claims, litigants in private claims now have evidence that (a) Goldman will pay on CDOs for misstatements and (b) Goldman has admitted its misstatements misled Investors enough for Goldman to repay them in full (or pretty close)."

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