Goldman Sachs: Financial Winners & Losers
(Goldman Sachs and other stock prices brought current in this update.)
NEW YORK (
) --
Goldman Sachs
(GS) - Get Report
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.
Goldman Sachs
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
(BAC) - Get Report
lost 3.1% to $17.73,
Citigroup
(C) - Get Report
fell 2.9% to $4.43,
JPMorgan Chase
(JPM) - Get Report
was down 2.9% to $42.71, and
Morgan Stanley
(MS) - Get Report
slid 2.6% to $30.49.
Wells Fargo
(WFC) - Get Report
shares had traded in positive territory for much of the session, but were lately down 0.2% to $33.18.
On the earnings front,
MetLife
(MET) - Get Report
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.
Meanwhile,
Genworth Financial
(GNW) - Get Report
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.
In addition,
Barclays
(BCS) - Get Report
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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