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.
Goldman Sachs reports $15.8 billion in mortgage-related litigation
Most Popular Articles
Latest Articles
The Retirement Trifecta
To retire successfully, to meet the challenges and manage the risks Boomers face, they will need to secure their own personal, Financial Trifecta.
-
Ocwen improves overall reverse mortgage performance despite volume contraction
-
Top LO Tim Potempa joins E Mortgage Capital
-
Mountain West Financial sells retail assets to ML Mortgage Corp.
-
New appraisal bias protections apply to reverse mortgage program: FHA
-
Engel & Volkers continues its expansion in Atlanta