Goldman Sachs top brass were at the receiving end at the US senate hearing last week, and further action is in the offing for the company from the US justice department. There are reports of a criminal case being filed against the company in the coming weeks, which could not be confirmed.
But the stock market was pounding the company shares by over 8% in yesterday’s trading due to the news.
The company has been betting against the same securities which it sold to investors without disclosing that it is the seller of the same securities. There are also strongly worded emails between various Goldman employees which are now working against the company.
So expect tough times for the world’s largest financial services company in the near future. And with many strong corporate results from most of the US majors hogging the limelight, there could be hardly any resistance from the macro factors for action against Goldman Sachs.