Nosedive

Goldman Stock Plummets

Goldman Sachs stock dropped 9.4 percent Friday in response to Thursday night’s news of a federal investigation into the firm’s trading, which may result in criminal charges. The drop occurred after two major Wall Street analysts lowered their ratings of the stock (one from “hold” to “sell,” and another from “buy” to “neutral”)—and in spite of last week’s quarterly report from the company, which revealed that first-quarter earnings had doubled from the previous year. Goldman stands accused of defrauding investors in the housing market, a public-relations problem compounded by the announcement of a second, criminal investigation.