FANGMAN Come Re-Unglued. Debacles Sink Goldman Sachs, Apple, and — Oh Gosh, Not Again — GE

Tuesday, November 13, 2018
By Paul Martin

by Wolf Richter
WolfStreet.com
Nov 12, 2018

Fears that the bull market died sent people and algos scrambling out of the way.

There were company-specific debacles that sank some of the gorillas, such as Goldman Sachs, Apple, and – oh gosh, not again – GE; and there was the general issue of fears circulating that the bull market has died, with people and algos trying to scramble out of the way:

The Dow dropped 602 points, or 2.3%, to 25,387.
The S&P 500 dropped nearly 2% to 2,726.
And the Nasdaq dropped 2.8% to 7,201.

Goldman Sachs got re-embroiled in corruption allegations

Goldman Sachs shares [GS] plunged 7.5% to $206.05 today. They’re down 24% from their 52-week high in March.

The company came under renewed scrutiny for its role in the 1MDB corruption scandal when it emerged late Friday that then-CEO Lloyd Blankfein was the unidentified Goldman executive who attended a 2009 meeting with Malaysian Prime Minister Najib Razak, Malaysian financier Low Taek Jho, and about a dozen other people, referenced in the US indictment unsealed on Friday.

Goldman Sachs arranged $6.5 billion in bond deals in 2012 and 2013 to fund 1MDB. The DOJ alleged Low Taek Jho paid bribes to officials and attempted to launder billions of dollars stolen from the fund. According to prosecutors, about $4 billion of those funds were stolen by numerous people, including friends and family of Malaysia’s prime minister at the time.

The Rest…HERE

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