Goldman’s Shares Plunge on Inquiries and Downgrades
By LOUISE STORY and MICHAEL J. de la MERCED
NYT
Already facing investigations on two fronts into its practices in the mortgage market, Goldman Sachs came under pressure from investors as well on Friday.
After reports on Thursday evening that federal prosecutors had opened an investigation into trading at Goldman, raising the possibility of criminal charges against the Wall Street giant, the firm’s stock was downgraded on Friday by two analysts. Standard & Poor’s lowered its rating from hold to sell, and Bank of America Merrill Lynch dropped its rating from buy to neutral, citing the mounting investigations.
Investors responded by sending the stock down 9.4 percent to $145.20, contributing to an overall decline in financial shares on Wall Street.
The financial impact of Goldman’s troubles continues to mount. Since the Securities and Exchange Commission announced on April 16 that it had filed a civil fraud suit against the firm, its stock is down more than 20 percent, removing about $20 billion from its market capitalization. The drop is all the more striking given that Goldman delivered a blockbuster quarterly report last week, with first-quarter earnings doubling from last year.
(More here.)
NYT
Already facing investigations on two fronts into its practices in the mortgage market, Goldman Sachs came under pressure from investors as well on Friday.
After reports on Thursday evening that federal prosecutors had opened an investigation into trading at Goldman, raising the possibility of criminal charges against the Wall Street giant, the firm’s stock was downgraded on Friday by two analysts. Standard & Poor’s lowered its rating from hold to sell, and Bank of America Merrill Lynch dropped its rating from buy to neutral, citing the mounting investigations.
Investors responded by sending the stock down 9.4 percent to $145.20, contributing to an overall decline in financial shares on Wall Street.
The financial impact of Goldman’s troubles continues to mount. Since the Securities and Exchange Commission announced on April 16 that it had filed a civil fraud suit against the firm, its stock is down more than 20 percent, removing about $20 billion from its market capitalization. The drop is all the more striking given that Goldman delivered a blockbuster quarterly report last week, with first-quarter earnings doubling from last year.
(More here.)
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