This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Goldman Sinks on Subpoena, Bove Says Bail

Story updated with a comment from Goldman Sachs.

NEW YORK ( TheStreet) -- Goldman Sachs (GS - Get Report) stock is down on published reports that the firm has received a subpoena from the New York District Attorney's office.

Goldman Sachs' stock fell two percent to $133.50 after the news.

Rochdale Securities analyst Richard Bove told TheStreet that he expects the stock to decline to $120 by the end of trading Thursday, arguing that the political risk for the firm has increased and he that investors need to exit their positions.

"I would sell the stock," Bove says. "The government has made a decision that Goldman is a high profile risk to society. You don't often see a government go after a company and the government will continue to go after them until Goldman changes its management and restructures."

Bove has had a sell on Goldman since May 12.

Bloomberg says sources said the office requested information related to the bank's activities related to the U.S. Senate's Permanent Subcommittee on Investigations report and the bank's role in the mortgage industry.

Goldman would not confirm or deny it had been subpeoned.

"We don't comment on specific regulatory or legal issues, but subpoenas are a normal part of the information request process and, of course, when we receive them we cooperate fully," a spokesperson said.

The New York District Attorney's office would not comment on the reports.

--Written by Maria Woehr in New York.



To contact the writer of this article, click here: Maria Woehr.

To follow the writer on Twitter, go to http://twitter.com/newsgirlmw.

To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GS $192.26 2.30%
AAPL $124.25 -0.14%
FB $81.66 -0.68%
GOOG $542.45 -1.00%
TSLA $187.51 -0.67%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs