{"id":5123,"date":"2011-03-02T00:00:00","date_gmt":"2011-03-02T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/03\/goldman_sachs_reports_34_billi"},"modified":"2022-04-14T14:24:10","modified_gmt":"2022-04-14T19:24:10","slug":"goldman-sachs-reports-34-billi","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-reports-34-billi\/","title":{"rendered":"Goldman Sachs Reports $3.4 Billion in \u201cReasonably Possible\u201d Losses from Legal Claims"},"content":{"rendered":"<p>In its latest 10-K filing with the US Securities and Exchange Commission, Goldman Sachs Group Inc. says that its \u201creasonably possible\u201d losses from legal claims may be as high as $3.4 billion. The investment bank\u2019s admission comes after the SEC told corporate finance chiefs that the should disclose losses \u201cwhen there is at least a reasonable possibility\u201d they may be incurred regardless of whether the risk is so low that reserves are not required.<\/p>\n<p>Goldman admits that it hasn\u2019t put side a \u201csignificant\u201d amount of funds against such possible losses and its estimate doesn\u2019t factor in possible losses for cases that are in their beginning stages. The $3.4 billion figure comes from a calculation of three categories of possible liability. Also factored in were the number of securities sold in cases where purchasers of a deal underwritten by Goldman Sachs are now suing the financial firm and cases involving parties calling for Goldman Sachs to repurchase securities.<\/p>\n<p>Between 2009 and 2010, the financial firm reported a 38% decline in net income from $13.4 billion to $8.35 billion. Trading revenue dropped while non-compensation expenses, which were affected by regulatory proceedings and litigation, went up 14%. It was just last year that the investment bank paid $550 million to settle SEC charges that it misled investors when selling a mortgage-linked investment in 2007. Goldman Sachs is still contending with state and federal securities complaints alleging improper disclosure related to mortgage-related products. As of the end of 2010, estimated plaintiffs\u2019 aggregate cumulative losses in active cases against Goldman Sachs was at approximately $457 million.<\/p>\n<p><strong>Related Web Resources: <\/strong><br \/>\n<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2011-03-01\/goldman-sachs-estimates-possible-losses-from-legal-cases-at-3-4-billion\">Goldman Sachs Puts \u2018Possible\u2019 Legal Losses at $3.4 Billion<\/a>, Bloomberg Businessweek, March 1, 2011<\/p>\n<p><a href=\"https:\/\/www.sec.gov\/answers\/form10k.htm\">Form 10-K,<\/a> SEC<\/p>\n<p><a href=\"https:\/\/www.investorlawyers.com\/blog\/2010\/07\/goldman_sachs_settles_sec_subp_1\">Goldman Sachs Settles SEC Subprime Mortgage-CDO Related Charges for $550 Million<\/a>, Stockbroker Fraud Blog, July 30, 2010<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-reports-34-billi\/#more-5123\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In its latest 10-K filing with the US Securities and Exchange Commission, Goldman Sachs Group Inc. says that its \u201creasonably possible\u201d losses from legal claims may be as high as $3.4 billion. The investment bank\u2019s admission comes after the SEC told corporate finance chiefs that the should disclose losses \u201cwhen there is at least a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3947,3740,3761,3741],"tags":[],"class_list":["post-5123","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-goldman-sachs","category-miscellaneous","category-securities-and-exchange-commis","category-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Goldman Sachs Reports $3.4 Billion in \u201cReasonably Possible\u201d Losses from Legal Claims &#8212; Investor Lawyers Blog &#8212; March 2, 2011<\/title>\n<meta name=\"description\" content=\"In its latest 10-K filing with the US Securities and Exchange Commission, Goldman Sachs Group Inc. says that its \u201creasonably possible\u201d losses from legal &#8212; March 2, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-reports-34-billi\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Goldman Sachs Reports $3.4 Billion in \u201cReasonably Possible\u201d Losses from Legal Claims &#8212; Investor Lawyers Blog &#8212; March 2, 2011\" \/>\n<meta name=\"twitter:description\" content=\"In its latest 10-K filing with the US Securities and Exchange Commission, Goldman Sachs Group Inc. says that its \u201creasonably possible\u201d losses from legal &#8212; March 2, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Goldman Sachs Reports $3.4 Billion in \u201cReasonably Possible\u201d Losses from Legal Claims &#8212; 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