Goldman Sachs builds legal reserves
Bank raises estimate of potential losses to $2.5 billion
Goldman Sachs put aside $66 million to cover legal costs in Q2, up 78% on the first quarter.
Chief financial officer Stephen Scherr said the bank was adjusting its estimate of ‘reasonably possible losses’ (RPL) to $2.5 billion from $2 billion. This is the bank’s guess of its aggregate losses above accumulated reserves for legal costs that may or may not be incurred.
Year-to-date, legal provisions are $103 million, compared with $192 million for the first half of 2018.
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