Recent reports by Daily Finance and the Washington Post estimate that the legal fees in defending Goldman Sachs against six private shareholder lawsuits as well as the SEC investigation could reach $100 million.  Troy Eid, a former U.S. Attorney General for Colorado says that even before a company hires a law firm, the legal bills start piling up.  A simple grand jury subpoena, done before a formal investigation gets underway, can cost $100,000 just to get documents ready, he says.  Eid, who oversaw the prosecution of Qwest Communications Chair and CEO Joe Nacchio in 2005, says “This is a tremendously big deal in terms of legal costs”.

Jon May, chairman of the White Collar Crime Section for the National Association of Criminal Defense Lawyers, couldn’t help but notice that during live Senate testimony, Goldman executives were each represented by several attorneys.  Conservative estimates place hourly rates at $550, but it’s more likely closer to $1,000.  “You have a multiple of law firms representing individuals, and all kinds of specialists”, May said.