Goldman Sachs legal costs could lift amid mortgage investigations
According to MarketWatch, Goldman Sachs Group Inc. (GS) said U.S. inquiries into the way Wall Street packaged and sold mortgage bonds ahead of the financial crisis may bring about a "significant increase" in the firm's legal costs.
In its quarterly regulatory filing, Goldman said "ongoing investigations by members of the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force" could results in a rise in its liabilities tied to mortgage-related matters.
Those potential costs, however, weren't factored into a range of "reasonably possible" losses Goldman faces related to various legal and regulatory disputes. Goldman this week raised the top end of that range to $4 billion above what it had already set aside in legal reserves, up from $3.5 billion at the end of June.