“The Wall Street firm said Friday in a regulatory filing that ‘allocations of and trading in fixed-income securities’ were among the activities regulators were probing. The list also includes more familiar investigations, including governments’ interests in the firm’s metals-storage business and communications related to Wall Street’s role in setting benchmark interest rates.”
“A Goldman spokesman declined to comment on the new disclosure.”
“Goldman and other investment banks sell stocks, bonds and other securities issued by clients seeking to raise money on the capital markets, divvying up, or allocating, each offering to money managers and other investors.”
“In the same filing, Goldman lowered the top end of its range of “reasonably possible” legal costs to $3.6 billion more than what it had already set aside in reserves. That figure stood at $4 billion in the prior quarter.”
“Under accounting standards, “reasonably possible” losses refer to those events that less than likely, yet more than remote.”
Read full Wall Street journal article here.