EMBATTLED US bank Goldman Sachs will pay a record $550 million (€425m) to settle a US fraud probe, the Securities and Exchange Commission said yesterday.

Wall Street giant Goldman Sachs has been accused of defrauding investors in a civil lawsuit filed by America's Securities and Exchange Commission (SEC).

One of America's wealthiest men was arrested on the day he was due to fly to London over a £15.6m (€17.11m) insider trading case.