Goldman Sachs stock nosedives 3% on legal trouble

Laura Miller
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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.

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