The challenge for regulators is to impose more structure on the swaps market without limiting innovation in instruments that funds and other investors have found useful.

WSJ: Swaps Add Risk to Fund Portfolios

This year the smorgasbord from Iowa to California groaned under all the offerings: flattening the tax structure, abolishing free-trade agreements, limiting the terms of lawmakers, reinventing welfare or health care or public housing or farm subsidies, spending more on defense, cutting this agency or that, restricting immigration.

CNN: It's All In The Timing

Another hurdle is how to structure a settlement that is narrow enough to satisfy Goldman, including by limiting its legal liability, but would allow the SEC to go after the company if the agency uncovers new evidence of wrongdoing related to the existing cases, according to people familiar with the discussions.

WSJ: Goldman, SEC Hold Catch-All Settlement Talks