The estimate, which tracks potential losses above what already was set aside in reserves, was at about $5.3 billion in November.
Goldman agreed in January to settle U.S. and state investigations into its sale of mortgage bonds heading into the financial crisis and reserved costs related to the accord in the fourth quarter. The firm agreed to pay a civil monetary penalty of $2.39 billion, make $875 million in cash payments and provide an additional $1.8 billion in consumer relief.
In accounting for those costs, Goldman lowered the range of reasonably possible losses it might rack up from litigation.
In the same filing, Goldman changed the list of investigations it faces from regulators. The Wall Street firm said regulators are scrutinizing activities related to its “compensation practices.” The reference hadn’t appeared in the previous quarterly report.
[“Source-wsj”]
