Saturday, May 1, 2010

Goldman’s Shares Plunge on Inquiries and Downgrade

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 Standard & Poor’s from hold to sell.

Investors responded by sending the stock down more than 8 percent in morning trading, to $147.10, contributing to an overall decline in financial shares on Wall Street. (more)

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