BUSINESS

Goldman Sachs Stock Tumbles On News Of Criminal Probes, Downgrades

06/30/2010 05:12 am ET | Updated May 25, 2011

Though a marathon day of testimony in front of a Congressional panel this week didn't budge Goldman Sachs' stock price, news of a criminal probe and two downgrades of the bank's stock sent shares tumbling today.

At the time of this post, Goldman stock was down nearly 10 percent. Both Bank of America Merrill Lynch and Standard & Poor's took dimmer views of Goldman Sachs's stock, with the latter changing its rating from hold to sell.

Last night, word surfaced the Department of Justice was conducting an investigation into possible criminal case stemming from the SEC's charges that that Goldman Sachs defrauded investors in a complex derivatives deal. The AP reported that 62 House lawmakers pushed for the probe.

Which begs the question: Has Goldman's pristine reputation suffered enough damage to finally affect its stock price? At FT Alphaville Paul Murphy thinks the market has already spoken on Lloyd Blankfein's tenure as the bank's CEO. And at the Business Insider, Joe Weisenthal does the math -- since the SEC's charges, Goldman has lost about one-fifth of its market cap. Or roughly $21 billion.

Check out the huge plunge in Goldman's stock:

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