Feb. 28 (Bloomberg) -- Goldman Sachs Group Inc., which more than doubled the amount it set aside for litigation costs in 2013, said “reasonably possible” legal losses beyond those reserves were $3.6 billion.
The figure dropped from $4 billion at the end of the third quarter, while rising from $3.5 billion a year earlier, the New York-based bank said today in an annual regulatory filing. The estimate doesn’t include potential claims from investigations by the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force, the firm said.
Goldman Sachs added some items to its list of activities that are subject to current regulatory investigations and reviews, including “allocations of and trading in fixed-income securities,” its financial-advisory services and interactions between the bank’s research analysts and third parties.
Goldman Sachs had $962 million of net provisions for litigation and regulatory proceedings in 2013, primarily tied to mortgage-related matters, up from $448 million in 2012.
To contact the reporter on this story: Michael J. Moore in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Peter Eichenbaum at email@example.com Steve Dickson