From Dealbook:

Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission to settle charges of securities fraud linked to mortgage investments sold to investors, a person briefed on the matter told The New York Times’s Edward Wyatt.
Under the terms of the deal, Goldman will pay $300 million in fines to the S.E.C., with the rest serving as restitution, this person said. Goldman will not admit wrongdoing.
The S.E.C.’s director of enforcement, Robert Khuzami, is scheduled to hold a press conference late Thursday afternoon.

UPDATE: Here’s the SEC press release. Upshot, the case is proceeding against “Fab,” who appears to have been swiftly thrown under the bus by Goldman senior management:

Today’s settlement, if approved by Judge Jones, resolves the SEC’s enforcement action against Goldman related to the ABACUS 2007-AC1 CDO. It does not settle any other past, current or future SEC investigations against the firm. Meanwhile, the SEC’s litigation continues against Fabrice Tourre, a vice president at Goldman.