A rock and a hard place

I have some sympathy with Lord Goldsmith's position. If he steps away from the "Loans for Peerages" decision it could easily be painted and an admission that his own impartiality is compromised.

If he stays involved and no prosecutions follow his impartiality will definitely be questioned. Damned if he does and damned if he doesn't.

It is possible that he knows the story behind the story and is confident that prosecutions are on their way, if that is the case he can come out of this situation smelling of roses. If I were in his boat I would would stick with it but make sure that I keep everything as transparent as possible, any hint of a cover-up would be a disaster for him.