Financial services juggernaut Goldman Sachs Group, Inc. ( GS ) took another blow on Wednesday, as U.S. senators formally referred the company to federal regulators regarding their investigation into how the firm misled investors about mortgage-linked securities prior to the financial crisis.
Senators Carl Levin of Michigan and Tom Coburn of Oklahoma both signed a letter asking the SEC and Department of Justice to review the investigative panel's report. The investigation concluded that much of the blame for the credit crisis should fall on Wall Street firms, which convinced clients to buy extremely risky bond deals.
The referral is a formal request for federal regulators to review the report and possibly take additional action against Goldman Sachs. Last year, the firm was forced to pay $550 million to settle SEC claims about its marketing of complex securities called collateralized debt obligations.
Goldman Sachs shares were mostly flat in premarket trading Wednesday.
The Bottom Line
Shares of Goldman Sachs ( GS ) have a .92% dividend yield, based on last night's closing stock price of $151.87. The stock has technical support in the $145-$150 price area. If the shares can firm up, we see overhead resistance around the $155-$160 price levels.
Goldman Sachs Group, Inc. ( GS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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