One issue regarding the Goldman Sachs-SEC settlement is the effect it will have on would-be litigants. Many aggrieved investors--and there are many--were waiting to see the outcome, and it was thus imperative for Goldman Sachs (NYSE: GS) to avoid admitting guilt to any fraud charges.

Goldman achieved its objective by not admitting to any fraud (fraud news), but that doesn't necessarily mean it will stave off all suits. The Royal Bank of Scotland, for example, says it is considering all its legal options. RBS paid Goldman $841 million in August 2008 to settle a claim on credit insurance provided by ABN AMRO, the Dutch bank of which RBS had just bought, notes Reuters. RBS, however, is entitled to just $100 million as part of a $550 million settlement.

RBS's options include suing Goldman for additional restitution. According to Reuters, some investors have urged it in the past to pursue that route. All in all, it's unclear if the settlement will spark more litigation. We haven't seen it so far. What may be more likely is additional enforcement action that seeks some sort of global settlement among several banks for common CDO practices.

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