Goldman Sachs Adds Compensation Practices to List of Probesby
Hiring and compensation practices show up as separate item
Potential legal costs on top of reserves drop to $2 billion
Goldman Sachs Group Inc. added compensation practices to the list of matters receiving legal and regulatory scrutiny.
The firm’s annual 10-K regulatory filing, released Monday, describes matters in which the New York-based company has received regulatory or other governmental requests for information. The filing adds to disclosure from the third-quarter report, when the bank said hiring practices were under review as related to compliance with the U.S. Foreign Corrupt Practices Act. Monday’s document includes a new reference to compensation, in a passage that combines pay with hiring in a separate line item.
Separately, Goldman Sachs said its estimate of "reasonably possible" legal costs on top of reserves dropped to $2 billion from $5.3 billion at the end of September. In January, the company said it agreed to settle a U.S. probe into its handling of mortgage-backed securities for about $5.1 billion, cutting fourth-quarter profit by about $1.5 billion.