Shares in Goldman Sachs fell as much as 6 per cent today over fears that the blue-chip investment bank will report report a bigger than expected fourth-quarter loss. The stock settled down more than 1 per cent at $65.09 each at 4pm today.

Several analysts raised their estimates of Goldman's potential loss to as much as $2.7 billion for the quarter that ended on November 28. The bank is due to reveal its fourth-quarter figures early this month.

There has been persistent speculation that Goldman is about to reveal its first quarterly loss since going public in 1999, with talk intensifying after the US Treasury last month abandoned its proposal to buy mortgage securities and other debts from the banks.

Glenn Schorr, a UBS analyst, forecast a loss of $5.50 per share, or $2.7 billion, driven by writedowns as high as $5 billion.

Richard Staite, an analyst at Atlantic Equities, yesterday increased his loss forecast for Goldman to $4.65 per share, or $2.3 billion, for the fourth quarter.

Credit Suisse analyst Susan Roth Katzke changed her estimate from a predicted profit of $2.47 per share to a loss of $4, while Mike Mayo of Deutsche Bank reduced his estimate from a profit of 33 cents per share to a loss of 65 cents.

Ms Katzke said: "October was a difficult month ... November - though we were hopeful - was really no better with asset prices - equities, credit and real estate - only coming under more pressure."

Richard Bove, an analyst at Ladenburg Thalmann, cut his estimate for 2008's earnings per share from $10.11 to $8.58.

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