Goldman Sachs reports lower legal risk

Goldman Sachs (GSF) reported another drop in its projected litigation risk Wednesday, bucking a trend that has hit other major banks.

The New York-based investment banking giant said its "reasonably possible aggregate loss" is now approximately $2.5 billion beyond the amount already budgeted for potential penalties or defeats in judicial, regulatory and arbitration proceedings.

The rough total disclosed in Goldman's quarterly financial report represents a drop from the $3.2 billion the bank estimated in the bank's August filing and the $4 billion in its report last November.

By contrast, several other banks have disclosed rising legal risks.

JPMorgan Chase (JPM) on Monday reported that its reasonably possible losses from legal matters now total $5.9 billion, a $1.3 billion increase since June 30.

Additionally, Citigroup (C) stunned investors last week when the New York-based bank it cut its third-quarter earnings by $600 million due to an increased allowance for legal expenses.

Some of the pending legal matters reported by Goldman included mortgage-related securities lawsuits related to the bank's activities in the collateralized debt obligation market and separate lawsuits over the bank's underwriting of debt offerings for MF Global Securities, the brokerage that collapsed in bankruptcy in 2011.

Goldman reported it was also among the underwriters named as defendants in putative securities class-action lawsuits involving GT Advanced Technologies (GTAT), the tech firm that filed for bankruptcy court protection in October. The company been expected to provide scratch-resistant sapphire to tech giant Apple (AAPL) for future mobile devices.