Goldman Gains As SEC Settlement Removes Major Overhang |
| Wall Street Journal - Jul 16, 2010 |
Goldman Sachs Group Inc. (GS) shares surged in heavy early trading Friday, as the investment bank's settlement with the Securities and Exchange Commission lifted the major overhang on the stock.
After the closing bell Thursday, the SEC said Goldman agreed to pay $550 million to settle civil charges that it duped clients by selling mortgage securities that were secretly designed by a hedge-fund firm to cash in on the housing market's collapse. Goldman settled the civil fraud complaint without admitting or denying the charges.
The settlement clears a large risk hanging over the stock. The company lost about 30% of its market capitalization between April 15 - the day before the charges were filed - and July 1 when shares closed at a 52-week low. That equates to about $28 billion. From that point through Thursday's close, the stock gained 12%, adding $8 billion back to its market cap, helped in part by speculation the investment bank was nearing a settlement with the agency.
Goldman shares were recently up 3.5% to $150.25, having ended up 4.4% Thursday as speculation of a settlement swirled. Within the first 10 minutes of trading, volume had already topped 50% of the 30-day average.
Read Full Article from Wall Street Journal
- Posted: 2010-07-16 10:11:23
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
