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Goldman Sachs falls for fifth day as 1MDB risk remains in focus

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Goldman Sachs Group Inc. fell for a fifth consecutive session as it faces continued pressure from a high-profile corruption probe that has spanned continents.

Thursday 27, December 2018

(Bloomberg)--The bank’s shares dropped as much as three per cent Wednesday and were on track to their lowest close since July 2016. The stock, which is the fifth-heaviest weighted component of the Dow Jones Industrial Average, has fallen almost 12 per cent in the past five trading days.

Goldman shares have sold off as concern mounts about the impact of a global corruption probe that is examining its role in allegedly aiding a historic heist of a Malaysian investment fund known as 1MDB. Shares have shed more than 30 per cent of their value from a recent peak on 8 November, compared with Dow’s 15 per cent decline during the same period.

Alison Williams, a senior analyst at Bloomberg Intelligence, on Wednesday estimated that Goldman’s risks from investigations and lawsuits related to the 1MDB scandal could exceed $5 billion. However, she said the company could settle “for less than that amount, possibly for about $4 billion.”

While US equities in general have been roiled of late, with major indexes either flirting with or already having entered bear markets, Goldman’s performance has stood out. It has fallen almost 40 per cent this year, the biggest decline among the 30 members of the Dow, which is down 11 per cent in 2018.

TAGS : 1MBD, Goldman Sachs Group Inc., Dow Jones Industrial Average, Alison Williams

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