Goldman Sachs (GS) had about $15.8 billion of mortgage-related securities tied up in legal proceedings at the end of the third quarter, a large jump from $485 million at June 30. The investment-banking giant, however, estimated much less in “reasonably possible” losses from the litigation, projecting potential losses of $2 billion to $2.6 billion, the company said in a filing with the Securities and Exchange Commission. Goldman Sachs previously put the upper end of possible legal losses at $2 billion. As of Sept. 30, lawsuits against the company have plaintiffs who seek the rescission of about $15.8 billion in mortgage-related securities sold to them by Goldman. In September, the Federal Housing Finance Agency sued Goldman as well as 16 other financial institutions over soured mortgage-backed securities. The FHFA seeks to recover $11.1 billion from Goldman. The company reported a third-quarter loss of $393 million loss, or 84 cents a share, just the second quarterly loss for Goldman since going public in 1999. The quarterly loss was down from income of $1.9 billion, or $2.98 a share, a year earlier. Total assets under management at Sept. 30 were $821 billion down 3% from $844 billion the previous quarter. Write to Andrew Scoggin. Follow him on Twitter @ascoggin.

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