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

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read