(Goldman Sachs and other stock prices brought current in this update.)
NEW YORK (
was among the losers of the financial sector Friday after a report that federal prosecutors are conducting probes that could lead to criminal charges against the bank.
shares tumbled after
The Wall Street Journal
reported that the Justice Department has opened an investigation in connection with its mortgage-trading activities, raising the possibility of criminal charges.
Goldman Sachs chairman and CEO Lloyd Blankfein.
If filed, criminal charges brought against Goldman Sachs would be different from the civil securities-fraud charges brought against the bank by the
Securities and Exchange Commission's
two weeks ago.
Following the report, Bank of America/Merrill analysts
to neutral from buy with a stock price target of $160, down from $220. Meanwhile, Standard & Poor's lowered Goldman's rating to sell from hold, cutting its price target to $140 from $180.
Goldman Sachs shares were down 9.5% to $145.10. The stock has fallen more than 20% since the SEC originally filed the civil fraud charges on April 16.
Most other major U.S. bank stock were trading lower in sympathy.
Bank of America
lost 3.1% to $17.73,
fell 2.9% to $4.43,
was down 2.9% to $42.71, and
slid 2.6% to $30.49.
shares had traded in positive territory for much of the session, but were lately down 0.2% to $33.18.
On the earnings front,
posted a first-quarter profit of $1.01 a share, which was better than the Thomson Reuters average estimate for a profit of 97 cents a share. Revenue wasup 18% from a year ago to $13.2 billion, also above consensus. MetLife was lately up 0.6% to $45.91.
said it swung to a first-quarter profit of 36 cents a share from a year-ago loss of $1.08 a share. On a net operating basis that reflects the company's reduction in ownership of Genworth MI Canada, Genworth earned 23 cents a share, below the Thomson Reuters average estimate. Shares were down 8.2% to $16.60.
fell 8% to $20.55 even after the U.K. bank said first-quarter net profit in the quarter was 1.07 billion pounds ($1.64 billion), up from 826 million pounds a year earlier.
-- Written by Robert Holmes in Boston
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