Friday, April 30, 2010
NEW YORK, April 30 (Reuters) – U.S. stocks fell on Friday as Goldman Sachs tumbled on reports of a federal probe into the Wall Street powerhouse, prompting investors to unload bank shares.
The S&P financial index lost 1.8 percent, with Goldman’s stock (GS.N) hitting a session low of $144.45, its lowest in more than nine months.
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U.S. prosecutors in New York began an investigation, a source said, raising the possibility of criminal charges against Goldman two weeks after securities regulators accused the bank of civil fraud. Bank of America-Merrill Lynch downgraded Goldman’s stock to “neutral.”
“You’re seeing selling across the board from portfolio managers looking to reduce risk, based on the negative market implications of further damage to Goldman Sachs’ reputation,” said Michael James, senior trader at Wedbush Morgan in Los Angeles.
This article was posted: Friday, April 30, 2010 at 12:04 pm