Goldman Sachs stock nosedives 3% on legal trouble

Laura Miller
clock

Goldman Sachs received a subpoena from New York prosecutors seeking information on the investment bank's role leading into the global financial crisis, according to reports.

Goldman shares fell as much as 3.4% as news of the subpoena emerged. They later took back much of their losses to close down 1.3% at $134.38. The Manhattan District Attorney's office wants the bank to explain facts unearthed by a U.S. Senate sub-committee report about Wall Street's role in the housing market collapse, according to Reuters. That report said that in the months leading up to the financial crisis, Goldman dumped bad mortgage exposure on unsuspecting clients and counterparties, and in some cases dragged its heels when clients wanted to close out their losing positions.

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Catch up on the discussion

Professional Adviser
clock 21 August 2025 • 1 min read
PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

Aberdeen Investments Senior Investment Director and Head of Managed & Model Solutions Justin Jones shares what sets MyFolio Index apart following its Best Risk Targeted Range of Funds award win at the Professional Adviser Awards 2025.

Professional Adviser
clock 19 August 2025 • 3 min read
Woodford IM hits back at FCA's enforcement action including £46m in fines

Woodford IM hits back at FCA's enforcement action including £46m in fines

WIM said it 'strongly disagrees' with the regulator's decision

Cristian Angeloni
clock 05 August 2025 • 3 min read