Goldman Sachs estimates $3.4bn in legal losses

2 March 2011

Goldman Sachs will pay approximately $3.4 billion over the various legal contests it is currently involved in, a regulatory filing has estimated.

According to the documents, filed with the Securities and Exchange Commission (SEC), the bank believes it is “reasonably possible” it will be faced with such a bill.

The bank is embroiled in a number of lawsuits stemming from the global credit crisis and the way it has conducted business - and, as many of the cases are in an early stage, the amount of damages demanded from the firm is as yet unspecified.

However, in the document Goldman Sachs said: “The amounts reserved against such matters are not significant as compared to the upper end of the range of reasonably possible loss.”

Under financial regulations, the bank believes that the chances it may pay this sum are “more than remote but less than likely”.

In a separate filing, the Goldman revealed figures which showed it experienced 25 days when it did not make any money during last year.

By contrast, there were 68 days where the firm made more than $100 million through trades.

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