Goldman Raises 'Reasonably Possible' Legal Losses To $2.6 Billion In 3Q
November 09 2011 - 7:42AM
Dow Jones News
Goldman Sachs Group Inc. (GS) raised its estimated "reasonably
possible" legal losses stemming from various lawsuits and
investigations to be $2.6 billion as of the end of the third
quarter, up from $2 billion at the end of June, according to its
quarterly regulatory filing.
In the third-quarter filing Wednesday, Goldman said its
aggregate notional amount of mortgage-related securities sold to
parties that have sued for their money back is $15.8 billion. The
firm has disclosed numerous lawsuits alleging fraud related to
mortgage securities it packaged and sold during the financial
crisis, including actions brought by including the Federal Housing
Finance Agency (as conservator for Fannie Mae and Freddie Mac), the
National Credit Union Administration, Basis Yield Alpha Fund, the
Federal Home Loan Banks of Seattle, Chicago, Indianapolis and
Boston, the Charles Schwab Corp. (SCHW), Cambridge Place Investment
Management Inc., Heungkuk Life Insurance Co. Limited, Landesbank
Baden-Wurttemberg, affiliates of Allstate, and others.
Goldman also said in the filing it is subject to investigations
and reviews by various unnamed government and regulatory groups
over its investment management services, and that it faces civil
suits and arbitration proceedings involving disputes with clients
related to losses allegedly incurred because of these services. It
said it is cooperating with the investigations and reviews.
The firm reported 21 days during which its trading resulted in
losses, including eight days where trading revenues were reported
to be between zero to losses of $25 million and another eight days
were losses ranged from $25 million to $50 million. Goldman said
its losses exceeded its daily value-at-risk parameters on one day
during the third quarter. It also reported nine days when trading
gains exceeded $100 million.
-By Liz Moyer, Dow Jones Newswires; Liz.Moyer@dowjones.com
Allstate (NYSE:ALL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Allstate (NYSE:ALL)
Historical Stock Chart
From Jul 2023 to Jul 2024