Goldman Sachs likely will settle with regulators over a case involving a collateralized debt obligation, and analysts at Bernstein Research estimate such a settlement will result in a $621 million reduction in earnings, or $1.05 a share.

Citing a legal advisor with whom they have spoken, Bernstein analysts said in a report published on May 27 that many informed lawyers agree the SEC’s lawsuit is just not "very strong.” As a result regulators and the investment bank may want to reach a settlement.

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