Goldman Sachs Falls for Fifth Day as 1MDB Risk Remains in Focus

(Bloomberg) -- Goldman Sachs Group Inc. fell for a fifth consecutive session as it faces continued pressure from a high-profile corruption probe that has spanned continents.

The bank’s shares dropped as much as 3 percent Wednesday and were on track to their lowest close since July 2016. The stock, which is the fifth-heaviest weighted component of the Dow Jones Industrial Average, has fallen almost 12 percent in the past five trading days.

Goldman Sachs Falls for Fifth Day as 1MDB Risk Remains in Focus

Goldman shares have sold off as concern mounts about the impact of a global corruption probe that is examining its role in allegedly aiding a historic heist of a Malaysian investment fund known as 1MDB. Shares have shed more than 30 percent of their value from a recent peak on Nov. 8, compared with Dow’s 15 percent decline during the same period.

Alison Williams, a senior analyst at Bloomberg Intelligence, on Wednesday estimated that Goldman’s risks from investigations and lawsuits related to the 1MDB scandal could exceed $5 billion. However, she said the company could settle “for less than that amount, possibly for about $4 billion.”

While U.S. equities in general have been roiled of late, with major indexes either flirting with or already having entered bear markets, Goldman’s performance has stood out. It has fallen almost 40 percent this year, the biggest decline among the 30 members of the Dow, which is down 11 percent in 2018.

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