UPDATE: Morgan Stanley Reiterates On Goldman Sachs Group Following FHFA Litigation Settlement

In a report published Monday, Morgan Stanley analyst Betsy L. Graseck reiterated an Equal-Weight rating on

, but removed the $200.00 price target. In the report, Morgan Stanley noted, “HFA filed its lawsuit back in September 2011. Given that other banks started settling back in 3Q13 (UBS was the first bank to settle back in July 2013, JPM settled in October 2013), we would be surprised if GS hasn't already reserved for this. GS took $142M in legal reserves in 3Q13 and $561M in 4Q13. GS specifically noted that 4Q13 litigation provisions were for mortgage related matters. All in, GS took legal reserves of $962M in 2013. Any top-up required is already in our estimates – we have $500M / $400M in legal expenses in 3Q / 4Q14 in our model. No change to EPS.” Goldman Sachs Group closed on Friday at $175.40.