Report: Goldman Underreserved for Legal Losses by $4B

Industries Reuters

Goldman Sachs Group Inc may be underreserved for legal losses by up to $4 billion, Chief Financial Officer Harvey Schwartz said on Wednesday.

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The Wall Street bank raised its estimate of "reasonably possible" legal losses by $500 million since June 30, Schwartz said on a conference call for fixed-income investors.

Banks generally do not disclose their overall amount of litigation reserves, but in recent years have begun telling investors how much they may be underreserved, at the U.S. Securities and Exchange Commission's urging. Goldman will release its updated figure in a 10-Q filing with the SEC within the 24 hours, Schwartz said.