Goldman Sinks on Subpoena, Bove Says Bail

Story updated with a comment from Goldman Sachs.

NEW YORK ( TheStreet) -- Goldman Sachs ( GS) 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.

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