Goldman Sachs (GS) Stock Up as Fed Takes Action in Leak Case
NEW YORK (TheStreet) -- Shares of Goldman Sachs (GS) - Get Report are climbing 0.38% to $161.15 this morning after the Federal Reserve decided to ready new enforcement actions against the New York banking firm for an information leak two years ago.
A New York Federal employee leaked confidential information to a Goldman Sachs banker and the two ultimately plead guilty of theft of government property.
Goldman Sachs has already paid a $50 million penalty to the New York Department of Financial Services in the case for not properly supervising the employee involved. The new Federal action may require the company to pay an additional penalty, the New York Times reports.
The government is also considering taking action against a former Goldman Sachs executive who had access to the sensitive information.
Both the employee and the senior executive who failed to supervise the banker properly were terminated.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, TheStreet Ratings also finds weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: GS