Banking Giant Faces $15 Billion in Lawsuits

Banking Giant Faces $15 Billion in Lawsuits

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Banking Giant Faces $15 Billion in Lawsuits
The Goldman Sachs Group faces lawsuits totaling over $15.8 billion—a 30-fold increase from the original amount reported three months ago--the bank said in a regulatory filing.
  
This figure, which is up from $485 million, does not represent how much the company estimates it will lose in court fees and litigation costs. Goldman has lifted its estimate of expected losses from $2 billion to $2.6 billion. 
This increased figure comes as investors in mortgage-backed deals have raced to take legal action before statutes of limitations expire. 

Goldman stated that it has entered agreements with some of the prospective plaintiffs to stop statutes of limitations from running, thereby enabling negotiations to commence. These negotiations, however, did not provide estimates for damages the bank may incur from such discussions. 

One of the primary suits filed by Goldman comes from the Federal Housing Finance Agency, who accused the bank of misrepresenting the quality of over $11 billion worth of residential mortgage-backed securities. 

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