Goldman’s Fraud Charges, Stocks Plunge, Dollar Climbs
Goldman Sachs was accused of fraud in the synthetic Abacus CDO transaction by the SEC. Financial shares plunged on the news leading the broad market sharply lower. The U.S. dollar and Treasurys benefited from the selling as capital sought refuge from the carnage. Even Mother Nature roared with the stock bears today as a volcanic ash cloud stifled international transportation. Goldman is vigorously defending the SEC’s allegations. Investors need to be alert that additional charges against other firms may be pending. The DJIA dropped -125.91 to 11018.66, the tech heavy Nasdaq slipped -34.43 to 2481.26 and the broad based S&P 500 gave back -19.54 to 1192.13.
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^GS^: SEC fraud allegations sent shares plummeting 12.79% or $23.57 to $160.70.
^GOOG^: Shares fell 7.59% or $45.15 to $550.15 after results missed the most optimistic projections and costs climbed.
^GE^: A sales drop and an earnings miss sent shares down 2.72% or 53 cents to $18.97.
^PALM^: Shares climbed 3.52% or 19 cents to $5.59 on take over chatter.
Gold plunged $23.80 to $1136.50, oil gave back $2.42 to $83.09 and the VIX soared 15.54% to 18.36 on the Goldman fear.
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