Is this the cleanest firm on Wall Street ?
Last week, in a regulatory filing, Goldman Sachs estimated it may spend $4bn more than it has already budgeted for settlements and fines and lawyers fees, up from $3.5bn three months ago.
In the last week or two, nearly all of the large banks have disclosed billions in potential additional legal expenses. JPMorgan Chase puts that number at $5.7bn. Bank of America, which recently was found guilty of selling defective mortgages, isn't far behind at $5.1bn. Citigroup says $5bn.
The one exception is Morgan Stanley. In its quarterly report, which the company filed with the SEC last Monday, the bank left blank what its additional legal expenses could be. Instead it said it didn't think the cost would be 'material' to its business.
So, Morgan Stanley is either the cleanest bank on Wall Street, or it's living in denial.
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