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Goldman cuts top end of legal loss estimate by 62%
[NEW YORK] Goldman Sachs Group Inc cut the upper end of its estimate of legal losses it may face beyond what it has set aside by more than half to US$2 billion.
The bank had estimated in November legal expenses of up to US$5.3 billion above what it had already set aside.
The Wall Street bank is involved in a number of judicial, regulatory and arbitration proceedings.
For the fourth quarter, the bank reported a 64 per cent jump in non-compensation costs due mainly to the US$1.95 billion set aside for litigation and regulatory issues.
Goldman, which released the latest figure in a regulatory filing, is among several financial firms targeted by a federal-state working group probing misconduct in the sale of mortgage-backed securities prior to the financial crisis.