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…While Goldman Sets Aside $3 Billion for Legal Costs

Goldman Sachs estimates that its legal bill could run up to $3.0 billion, an increase of $500 million on previous estimates.

Goldman is another of the 12 banks currently facing an antitrust class action lawsuit in New York over allegedly conspiring to manipulate the FX markets, in addition to a number of other judicial, regulatory and arbitration proceedings.

In a regulatory filing, the bank says that its trading activities and communications in connection with the establishment of benchmark rates, including currency and ISDAFix rates, are still being scrutinised by financial watchdogs, as well as its system of risk management and controls.

The bank states that it was cooperating with all regulatory investigations and reviews by various governmental and regulatory bodies.

Areas of Goldman’s businesses and operations still under investigation include the sales, trading and clearance of corporate and government securities, currencies, commodities and other financial products and related sales; algorithmic, high-frequency and quantitative trading; the firm’s US alternative trading system; futures and options trading; transaction reporting; technology systems and controls.

“Given the range of litigation and investigations presently under way, our litigation expenses can be expected to remain high,” the firm says in the filing.

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