Goldman Sachs Facing Tough Times, But Can Survive: Analysts
One of Wall Street’s most influential bank, Goldman Sachs, is in serious trouble facing charges of securities fraud leveled by US Securities Exchange Commission (SEC), America’s financial regulator.
The SEC charged the firm, which has recently emerged from crisis, with securities fraud in the underwriting of a $1 billion collateralized-debt obligation linked with subprime mortgages.
Experts maintained that although the allegations against Goldman are serious, Wall Street's reaction towards the issue is little overblown. A leading US analyst said that the SEC action would definitely give tough time to Goldman’s management, he stressed that it would be unwise to count Goldman out.
Goldman Sachs shares went down by 13% after the SEC’s lawsuit and other major financial institutions also suffered due to Goldman’s incident. JPMorgan Chase lost 2.26 points to end the day at 45.55, and Morgan Stanley shed 1.72 points, to 29.16.
