Goldman legal costs could reach nearly $6bn

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Goldman Sachs increased its estimate for reasonably possible legal costs in excess of reserves by 55% to $5.9bn.

Bloomberg News reports that the second-quarter figure, which the firm disclosed in a regulatory filing Monday, was up from $3.8bn three months earlier. Unlike in previous quarters, the estimate included costs that could arise from a Department of Justice probe into sales of mortgage-backed securities.

Goldman Sachs has held talks with the Justice Department over a settlement of that probe and may pay as much as $3bn, a person familiar with the talks said in June.

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Goldman Raises Estimate of Possible Legal Losses to $5.9 Billion

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