The bank lost $100 million on the securities deals that provoked a lawsuit filed on Friday by U. S. regulators, Goldman Sachs executives said on Tuesday.

CNN reported that in a conference call with reporters, Goldman co-general counsel Greg Palm said, "We would never intentionally mislead anyone."

Sources told The Washington Post that U. S. regulators have been negotiating for months with Goldman Sachs concerning a fraud settlement. When negotiations failed, the Securities and Exchange Commission filed suit alleging the bank sold mortgage-backed securities secretly designed to fail, as they were selected by hedge fund manager John Paulson, who had bet heavily against the housing market.

Paulson was not involved in choosing the securities that went into the so-called Abacus securities deals, Palm and Chief Financial Officer David Viniar said on Tuesday.

"We believe that the firm's actions were entirely appropriate, and will take all steps necessary to defend the firm and its reputation by making the true facts known," Goldman said in a statement on Monday.

They are also investigating the case in cooperation with the SEC, Foreign regulators, the Financial Services Authority in Britain and the Federal Financial Supervisory Authority in Germany, have said.

The Royal Bank of Scotland lost $850 million while Deutsche-Industriebank lost more than $100 million in investments related to the alleged fraud, The Post further reported. (With Inputs from Agencies)