Goldman Sachs Says Litigation Costs Could Hurt Profit

Goldman Sachs Group Inc., facing securities fraud charges leveled against it by the government, on Monday warned that future litigation costs could cut into profits.

The investment bank said it expects further litigation and investigations related to sales of collateralized debt obligations, according to a regulatory filing. Those type of transactions are the focus of the Securities and Exchange Commission's civil-fraud complaint.

Analysts have estimated that a settlement of the SEC's current complaint could range between $1 billion and $5 billion.

"We are involved in a number of judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of our businesses," the company said in a filing with the SEC. "Given the range of litigation and investigations presently under way, our litigation expenses can be expected to remain high."

Read Full Article from Wall Street Journal

- Posted: 2010-05-10 10:56:39

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