Securities regulators on Thursday said they will make a major enforcement announcement, fueling talk that a deal has been reached in their lawsuit against Goldman Sachs Group Inc .

CNBC, citing sources, reported that the Securities and Exchange Commission will announce a settlement with Goldman Sachs.

Goldman shares were up 2.8 percent to $149.30 in after hours trade from their $145.22 close in regular trade, rising after the government said it would make a significant announcement at 4:45 PM.

The SEC has accused Goldman of creating and marketing a debt product linked to subprime mortgages without telling investors that a prominent hedge fund helped choose the underlying securities and was betting against them.

The market response is that this will be an announcement of Goldman's settlement inasmuch as that is the most important thing that SEC currently has going, Gary Townsend, chief executive of Hill-Townsend Capital said.